We are ignoring the signals , and this could be dangerous

On October 11, 2012, i wrote the blog ‘From Emerging to a Submerging Economy’ https://commonmansblog.com/2012/10/11/india-from-emerging-to-a-submerging-economy/

I read the story in the Economic Times today, titled ‘Feast of Burden’ ( Page 10, ET dated August 3-9, 2014). It is almost two years since i wrote my blog and this story on corporate debt. Things are still the same , rather have gone worse . For example ,

The cumulative debt of;

• Tata Group is about Rs. 2.00 lac Crore
• Reliance ADA Group is about Rs. 83,000 Crore
• Jaypee Group is about Rs.66,000 Crore
• Bharti Group is about Rs.60,541 Crore
• GMR Group is about Rs.37,788 Crore
• Lanco Group is about 34, 876 Crore
• HCC is about Rs. 11,150 Crore

I am not mentioning the rest of the groups like ESSAR etc…. Small and mid-size companies would further make the situation scary .

It is time that the Government asked all these companies to come out with a clear statement of how they are going to service these debts, to ensure that these companies do not end up creating a ‘cloud burst’ for the Indian middle class and disturb the economic prospects of this developing country

Rajendra Pratap Gupta