Corporate despotism?

Kingfisher’s high-flying chairman, Vijay Mallya, has been knocking the doors of the Manmohan Singh government and banks to help him wriggle out of the financial mess his airlines is into. The owner of the F1 team and the IPL team, however, made it a point to clarify that it was not bailout that he was seeking but a “working capital management assistance”. Nicely put, Mr Mallya.
However, our Prime Minister has made a statement that the government might consider “bailing out” the airlines.
What is the logic of bailing out a private sector unit? If Manmohanomics is the mantra post 1991, why are we chanting a different tune? We have been pushing for private participation; we have been preparing a suitable environment for attracting foreign investment; we are bending backwards to disinvest the public sector units.
Let us decide the economic system we want to find ourselves in. If it is capitalism, then let us play by the rules ruthlessly. Why are we trying to bring in our socialism sympathy here? Agreed, a number of jobs are at stake. But isn’t that the norm of free market economy: Cold-blooded competition which shows no mercy on those who have failed in the race.
Then why is Mr Singh considering a pit stop for this F1 team owner? Why does he want to refuel Mallya’s bottomless appetite for grandiose?
The civil aviation ministry has been pushing banks to offer support to the country’s second largest airline, while not having readily responded to Mallya’s pitch for investment by foreign airlines.
A consortium of 13 banks, led by the SBI that have lent money to Kingfisher Airlines, are planning to quiz Mallya before a debt restructuring plan for the private carrier.
As expected the India Inc is divided over this “bailout” scheme. Bajaj Group chairman, Rahul Bajaj, opposing the government intervention has said that those who die must die in a free market economy.
By the way, the same Bajaj was opposed to the idea of a cut in import tariffs in early 1990s when Singh, then finance minister, ushered in reforms.
Spice Jet chief Neil Mills has said the government should not use taxpayers’ money to revive a private sector unit.
These seem music to the socialist’s ears. But is there a rulebook for the games that corporate India and the government of India play? The finances, bailouts and concessions are all the jokers in the pack that help them substitute their aces and spades in this game of symbiotic relationship.
There is just one question: in free market economy everything is according to market prices. At least that is what the capitalism rulebook says. What about special economic zones or simply put: land given at dirt prices. Or what about land bought (read usurped) from farmers for a song and given to industrialists to set up their industrial plants?
Are we talking about capitalism? Oligarchy? Or worse, corporate despotism?