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FAQ - DD 370

What is the purpose of DD 370?
And does it really do what a “good leader” is supposed to do? It is a classic case of the fallacy of the “if you can't beat 'em, buy them.” The government bought these companies — except BPL — in 2011, during the UPA's government. They will sell BPL to whoever is willing to pay them. The government's decision to buy back BPL was made not in an election year, but in 2014 when the party in power was in power. Since then, BPL is a symbol of corruption and incompetence while the government still has the means and facilities to ensure that a company is profitable and not in a cash-flow-negative situation. The BPL saga also highlights the futility of the government's policy initiatives to improve corporate governance. It appears that the “good leader” concept doesn't work. And the “if-then-else” approach does. In order to revive any company, a government and its ministers need to make a decision — be it an investment, a project or a policy. No matter which. The government has done the bidding. It just needs to do the work. But, in its haste to make any positive action, the government appears to have confused “bidding” for “making” and in the process, has made its “bidding-for-buying” mistake twice: once in 2010 when it bought back the power utility and again in 2014 when it bought BPL. This isn't even the third time in a week the government has paid the market price — or a fair one at that — for the company it has already bought back. “I want to take BPL back,” said Normal Starman on the floor of the Raja Sasha. And yet, with all the money they have made on the back of a poor BPL project, no decision has been taken and as far as we know, a firm decision hasn't been taken. The government claims the cost incurred on the BPL project is not the government's own. But it has already paid the BPL market rate or a fair one, for BPL. The same goes for any other investment. If the government wants to invest in an agriculture crop, it doesn't ask the farmer to put in his own money for it — only if the farmer puts in his own money.
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