Of course, it is.
Both you and I know this project will not be approved in any corporation where the CEO has to report to the shareholders. The project economics are simply not there whichever way you look at it. The claimed savings will have to be cut down by about 60 % or so because the actual time savings are about 6-8 hrs vs 24 hrs claimed. The reduction is due to the slower tug-boat speed through the channel which was overlooked. This is assuming ships will indeed use this passage because the toll payment will outstrip any fuel savings they may realize. If it is made toll-free or the toll is subsidized, then this extra outlay by the govt has to be figured in project economics which it does not.
Even if one discounts the above-mentioned points and accepts the project published figures at face value, then the project really sees green only in year 30! and even then it claims to make only Rs 500 crores in year 30. This is on an initial capital outlay of Rs 2500 crores! No sane person will put his/her money in this project as conceived.
On the other side of the coin, if we put this as a necessary investment to boost local employment and bettering the welfare of people, ie as a social expenditure, then these benefits to the society have not been estimated by the project. Because these benefits are simply not there and in fact the project will not benefit the common man.
Eitherway you look at it, one is not convinced that the project is not a scam.
This truth is muddied in the political waters.
(Comment by Sundara Krishnaswami, 12 Sept. 2007)
Sethusamudram project is huge scam: CM
By Our Staff Reporter
Bhopal, Sept 10: Chief Minister Shivraj Singh Chouhan today alleged that the Sethusamudram Project was an even graver scam than the Taj Corridor. ”However, as it is the Centre’s project, the Central Bureau of Investigation is unable to muster courage for a probe,” he said here.
Claiming that the Palk Strait’s Ramsetu was not only a symbol of every Indian’s faith but also involved the issue of the direction of development, the Chief Minister added that demolition of the Ramsetu was akin to tearing down the Taj Mahal or Qutb Minar to clear space for roads.
”As far as the anti-demolition campaign in this state goes, my government is concerned only about its law and order aspect,” he said.