I think that the author is such a big fool that she doesn%u2019t know that every time a corporate company like TATA earns money it pays the tax which is used to buy steel for building the Infrastructure of the nation, to buy new buses etc. It looks like either he has a fantastic plan to make our country rich without earning money or his definition of social equality is %u201CEverybody is poor.%u201D He appears to be highly influenced by Communist Ideas but for your kind information Mrs. Sunanda even Russia has stopped following Communism. More the Indian Industry grows more will be the Jobs available. I think Reddif should ask the Authors to have at least some basic Knowledge about economy before writing an article.
RE:The author is an Idiot.
by Aniruddha on Feb 04, 2007 12:04 AM Permalink
dear dear. looks like ur knowledge of finance is a little weak. Tata's have struck the deal as an LBO( u check google/wikipedia for detailed explanation). It means they have financed it with debt. now when companies have huge debts, they have huge interest payments and they take tax shields for these interest payments. so initially all the money from the venture wil go to Investment Banks who gave debt to Tata's and also to Tata shareholders.
