People's Democracy(Weekly Organ of the Communist Party of India (Marxist)
March 19, 2006
February 1966 issue of Westminister Bank Review has estimated that the total indebtedness
of developing countries has increased from £8,000 million in 1962 to £11,700
million in 1964. The journal has further estimate that the service repayments on
the total debt amounted to nearly ₤1250 million annually-over half the net
aid-which the countries received in 1964.
journal pointed out India as the most heavily indebted developing country.
Discussing the question of repayment of the loans the journal noted, "Some
countries with debts maturing in the next few years can repay them only by
diverting funds from development plans and others cannot repay at all unless
re-phasing is allowed so that repayment is postponed. But that is hardly solving
journal has given comparative figures of external indebtedness of the developing
countries only upto 1962. Yet it shows that the rate of increase in India's
indebtedness is extremely high. Though in 1962 India topped the list, it was not
so in 1955. the following data will prove this.
figures do not include amount borrowed from the International Monetary Fund.
Declining Gold Output
the government is striving to mobilise hidden gold through the Gold Bond Scheme,
it is actually neglecting the task of raising more gold from the mines.
Consequently, the production of gold in India has gone down by about nineteen
per cent during the last six years.
1961-62, India produced 136,498 ounces of gold while the Budget for 1966-67
shows the estimated production of 110,000 ounces. The government has not made
any effort to explore new mines for the production of gold. At present it is
extracted from the Kolar Gold Mines in Mysore State alone.
total decline in gold output during the last six years is more than the gold
raised under the Gold Bond Scheme so far.
declining old output is further adding to the foreign exchange difficulties.
extent of profiteering in the banking industry can be very clearly seen from the
financial operations of the Bank of India, the third biggest bank in the private
bank with a paid-up capital of Rs 4.1 crores controls a total deposit of Rs 240
crores. The total investments of the bank have reached Rs 59.3 crores. On Rs 4.1
crores as paid-up capital the Bank earned during 1965 a profit of Rs 103 crore.
The rise of the banks profit since 1960 is as follows:
(Rs in lakhs)
the last three years, the bank has awarded 18 per cent dividend to the
95 Lakhs For Consultation
agreement was signed recently between Bharat Aluminium Co (BAICO), a public
sector undertaking and Messrs. VAW, a West German "consultancy' firm for
the implementation of the Koyna Aluminium Project which will produce 50,000 tons
every years. Under the agreement VAW will assist BAICO in the planning,
designing, construction and operation of the plant. The VAW will also supply its
operating experience, "know-how" and its patent property. The fee to
be paid by BAICO is eight million marks (approximately Rs 95 lakhs) and the
agreement is vaild for a period of ten years.
People's Democracy, March 20, 1966