'The risk of a financial contagion would exist'. The developments abroad will influence India's capital market. To maintain FDI inflow into the country we may take easy routes. The financial managers of the country has to be very careful to handle the issue. Decisions are to be taken with a foresight. Some may find easy ways to maintain liquidity /FDI. Operationalising the N-deal is a method readily at hand. Dont be lured by the glossy projections. Dangers hidden in it.
Several project details are negotiated and ready for signature including the various PPAs/BOTs. The depletion of Uranium deposit will inflate the price of Uranium to unimaginable levels. The sudden flow of capital will lead to inflation changing exchange rate to India's disadvantage. Price of Uranium, inflation, Cost escalations, production cost, horse tradings involved declining cultural value etc are factors affecting the energy cost. The loan repayments are in foreign currencies. The inflation and exchange rate will boost the loan repayment rupee value. This SPIRALING PROCESS is beyond our control once the BOT/PPA are operationalized.
This is the right time the patriotic financial wizards to come to the lime light. Show your guts to expose the false claims of the government. Your professional ethics warrant it. Come with articles analyzing various aspects in a language (format) that the leaders and bureaucrats can understand. Let the people know that. Debt trap waiting!!
