Companies & Sectors
Indian oil supply issues and powering Pakistan’s industries

The wheels of the nation can move smoothly when power supply is available in plenty and without any interruption

The Rangarajan Committee’s recommendation to fix the price of domestically produced gas at about $8 for Reliance Industries (and obviously, for others) was not welcomed by the company. The public reaction was such a move would have rippling effect on the economy and would increase costs everywhere. Andy, finally, the shocker, if can say a mild one at that, came from Veerappa Moily that the gas price be fixed at $6.77 per mmBtu (million metric British thermal unit).


The natural gas requirement in India is 286 mmscmd (million metric standard cubic metres per day) against the estimated (falling) production of 111 mmscmd.  Rest has to be imported unless expeditious actions are taken to increase indigenous production.


Although recently Reliance announced a substantial discovery of gas at its D-6 block, it will take around three years or more before this supply can hit the market. No doubt other explorers may strike a bonanza, and continuous efforts are being made to tap coal methane gas also.


There has been a public uproar to Moily’s statement that import lobby ‘threatens’ the decision making process at the oil ministries. As is usual, he later claimed that he was ‘misquoted’.


This issue of escaping the wrath of the public by ducking behind the ‘misquoted’ or ‘misunderstood’ or even ‘mis-interpreted’ statement would not arise at all, if in future, all the press meetings are ‘officially’ video taped and recorded. Such a move will put an end to any debates as officially recorded ‘evidence’ would be available!


The wheels of the nation can move smoothly when power supply is available in plenty and without any interruption. At this stage of domestic shortages, it is foolhardy to think of supplying power to Pakistan, whose industries are in bad shape. While it is sad to see them in this state, we have enough areas in the country that are in total darkness because of lack of power!


In any case, even though India extended MFN (Most Favoured Nation) status to Pakistan couple of decades ago, the latter has not reciprocated this facility to us. Why then must we supply power to it?


We must remember that it has taken years for the southern states to be in the national power grid and it is still, supposedly one more year or so before they will be connected. Power charity, should begin at home.


In the meantime, our approach to the problems faced in the oil industry needs some innovative thinking and expeditious and realistic actions.


Take the issue of permitting Cairn India to ‘reclaim’ the surrendered area in Barmer, Rajasthan, where it is already fully entrenched, but cannot be cleared without the Cabinet approval.  This sounds childish, though technically and legally, the government stand to go through the formalities may be right. In such cases, where the applicant has a proven track record and competence, discretion should be used to clear the matter and reinstate the surrendered area to it, so that it can go ahead in full swing. 


India needs these natural resources urgently and in plenty. In such cases regulatory approvals required by the oil and gas generators should be handled expeditiously and generously.


Meanwhile, even though India, along with eight other nations, has received exemptions from the US to import oil from Iran, it is in our national interest to concentrate on our domestic resources, as these are vital to our very survival. After all, what happens if the situation in Syria precipitates Iranian support and the trouble in Balochistan as a sequel to Musharraf’s arrest leads to trouble there, all of which can create a mess in the Strait of Hormuz, resulting in a shipping blockade?


(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce and was associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)


Bank of America lied to homeowners and rewarded foreclosures, former employees say

Former employees of Bank of America gave sworn statements that the bank lied to homeowners, denied loan modifications for bogus reasons and rewarded employees for sending homeowners to foreclosure

Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to sworn statements by former bank employees.

The employee statements were filed late last week in federal court in Boston as part of a multi-state class action suit brought on behalf of homeowners who sought to avoid foreclosure through the government’s Home Affordable Modification Program (HAMP) but say they had their cases botched by Bank of America.

In a statement, a Bank of America spokesman said that each of the former employees’ statements is “rife with factual inaccuracies” and that the bank will respond more fully in court next month. He said that Bank of America had modified more loans than any other bank and continues to “demonstrate our commitment to assisting customers who are at risk of foreclosure.”

Six of the former employees worked for the bank, while one worked for a contractor. They range from former managers to front-line employees, and all dealt with homeowners seeking to avoid foreclosure through the government’s program.

When the Obama administration launched HAMP in 2009, Bank of America was by far the largest mortgage servicer in the program. It had twice as many loans eligible as the next largest bank. The former employees say that, in response to this crush of struggling homeowners, the bank often misled them and denied applications for bogus reasons.

Sometimes, homeowners were simply denied en masse in a procedure called a “blitz,” said William Wilson, Jr., who worked as an underwriter and manager from 2010 until 2012.
As part of the modification applications, homeowners were required to send in documents with their financial information. About twice a month, Wilson said, the bank ordered that all files with documentation 60 or more days old simply be denied. “During a blitz, a single team would decline between 600 and 1,500 modification files at a time,” he said in the sworn declaration. To justify the denials, employees produced fictitious reasons, for instance saying the homeowner had not sent in the required documents, when in actuality, they had.

Such mass denials may have occurred at other mortgage servicers. Chris Wyatt, a former employee of Goldman Sachs subsidiary Litton Loan Servicing, told ProPublica in 2012 that the company periodically conducted “denial sweeps” to reduce the backlog of homeowners. A spokesman for Goldman Sachs said at the time that the company disagreed with Wyatt's account but offered no specifics.

Five of the former Bank of America employees stated that they were encouraged to mislead customers. “We were told to lie to customers and claim that Bank of America had not received documents it had requested,” said Simone Gordon, who worked at the bank from 2007 until early 2012 as a senior collector. “We were told that admitting that the Bank received documents ‘would open a can of worms,’” she said, since the bank was required to underwrite applications within 30 days of receiving documents and didn’t have adequate staff. Wilson said each underwriter commonly had 400 outstanding applications awaiting review.

Anxious homeowners calling in for an update on their application were frequently told that their applications were “under review” when, in fact, nothing had been done in months, or the application had already been denied, four former employees said.

Employees were rewarded for denying applications and referring customers to foreclosure, according to the statements. Gordon said collectors “who placed ten or more accounts into foreclosure in a given month received a $500 bonus.” Other rewards included gift cards to retail stores or restaurants, said Gordon and Theresa Terrelonge, who worked as a collector from 2009 until 2010.|

This is certainly not the first time the bank has faced such allegations. In 2010, Arizona and Nevada sued Bank of America for mishandling modification applications. Last year, Bank of America settled a lawsuit brought by a former employee of a bank contractor who accused the bank of mishandling HAMP applications.

The bank has also settled two major actions by the federal government related to its foreclosure practices. In early 2012, 49 state attorneys general and the federal government crafted a settlement that, among other things, provided cash payments to Bank of America borrowers who had lost their home to foreclosure. Authorities recently began mailing out those checks of about $1,480 for each homeowner. Earlier this year, federal bank regulators arrived at a settlement that also resulted in payments to affected borrowers, though most received $500 or less.

The law suit with the explosive new declarations from former employees is a consolidation of 29 separate suits against the bank from across the country and is seeking class action certification. It covers homeowners who received a trial modification, made all of their required payments, but who did not get a timely answer from the bank on whether they’d receive a permanent modification. Under HAMP, the trial period was supposed to last three months, but frequently dragged on for much longer, particularly during the height of the foreclosure crisis in 2009 and 2010.

ProPublica began detailing the failures of HAMP from the start of the program in 2009. HAMP turned out to be a perfect storm created by banks that refused to adequately fund their mortgage servicing operations and lax government oversight.

Bank of America was far slower to modify loans than other servicers, as other analyses we've cited have shown. A study last year found that about 800,000 homeowners would have qualified for HAMP if Bank of America and the other largest servicers had done an adequate job of handling homeowner applications.



Moneylife Impact: Now pay online for your passport; challan option also available

The Moneylife campaign to streamline and speed up issuance of passports has resulted in TCS launching an online payment system, which will reduce tout menace as well as absenteeism of applicants who take appointments but do not turn up

In a major step that would reduce absenteeism of around 20% passport applicants per day, who take appointment but do not turn up and prevent alleged block booking of appointments by illegal agents, Tata Consultancy Services (TCS), the private operator in partnership with the Passport Division of ministry of external affairs (MEA), has launched the online payment system for passport applications.


The company has provided various options for online payment in a very inclusive way as those who are not Internet-savvy have been given the option of depositing money in any of the State Bank of India branches after issuance of the challan online. So, in this case, the appointment would be given upon confirmation of payment by the bank. Otherwise, you can use your credit/debit card for online payment or opt for Internet banking of State Bank of India. Thereafter, the applicant would be automatically given the earliest appointment available.


Once the online payment is introduced in any city, it will be compulsory for the passport applicant to make the payment online. Under this facility, an applicant will be able to cancel/reschedule the appointment only twice within one year of the first appointment date. The system will not allow booking of online appointment for that ARN once two reschedule options are exercised or the first appointment was scheduled more than one year ago.


The press release elaborates: “Under the new process, payments can be made while booking an appointment on the website——either by credit /debit card (both Master and Visa) or internet banking of State Bank of India. Applicants can also use the challan option provided on thewebsite and deposit the money in the State Bank of India (SBI) branch after generating the challan online. In such cases, upon the confirmation of payment receipt by SBI in the online system, applicants can take an appointment.” Further, instead of the applicant choosing the date and time slot of the appointment, the system will automatically give earliest available appointment.


As per the press release, “with the launch of the online payment-based appointments, applicants will be required to make payment at the time of booking the appointment on the MEA website. With this, only genuine applicants will book the appointment and number of no-shows will reduce.”  Clearly, the role of illegal touts who indulge in block bookings, thus denying an appointment to the genuine applicant, would greatly diminish.


The facility, launched in Dehradun in the first week of June, has now been extended to 15 more cities, two days back. These include the Passport Seva Kendras (PSKs) of Ahmedabad, Varsha, Rajkot, Vadodra, Surat, Jammu, Srinagar, Guwahati, Saligramam, Tambaram, Aminjikarai, Madurai, Thirunelveli City, Trichy, Thanjavur, Coimbatore, Amritsar, Jalandhar and Hoshiarpur. The Online Payment System is already applicable at Dehradun, Chandigarh, Ambala, Ludhiana and Vizag PSKs. Pune and Mumbai would soon be included in this scheme.


According to TCS officials, an average of 20% absenteeism is observed on a daily basis—which means, those applicants who take appointments do not turn up. The press release issued by the MEA states, “Reviewing the operations over the last one year, it was observed that a large number of applicants were not turning up at the PSKs despite taking a valid appointment. This not only resulted in lesser utilization of processing capacity of the PSK, but also caused denial of appointments for other genuine applicants. To resolve the issue of non-availability of appointments and to reduce no-shows of applicants, the ministry has launched the online payment system for booking appointments.”


The new system will be gradually rolled out to all PSKs across the country in coming weeks.


Other improvements in the Passport Seva Project after a successful campaign carried out by Moneylife since March 2013 include:


*Longer working hours to benefit the citizens


* 24X7 Call Center Support in 17 languages

  • Granting decision taken in front of the applicant, therefore greater transparency Citizens leave the PSK with certainty on the status of their application
  • Transparency in the process and online real-time availability of data for ease of monitoring and decision making


For further information, please refer to MEA website – or contact the corresponding Regional Passport Office. You may also call up National Passport Call Centre at 1800 258 1800.


Steps for Online Registration & Appointment:

Following steps may be followed to obtain and manage appointment:

Step 1: Visit the website
Step 2: Register user name and assign a 'password'
Step 3: Log in using your user name and password

Step 4: Fill the online application form as the case may be and submit online
(alternatively, download e-form, fill up and upload the same on the portal).
Uploading of documents is optional

Step 5: Now take an appointment to visit the nearest Passport Seva Kendra (appointments are released region wise). It is advised that the citizen should be ready with step '1' to '4' above before the "appointment release time". As soon as appointments are released (please see region wise timings), they should click on
"Schedule Appointment" link to book the appointment. Appointment will be automatically booked and allocated to you if available.

For more details, log in to:


(Vinita Deshmukh is the consulting editor of Moneylife, an RTI activist and convener of the Pune Metro Jagruti Abhiyaan. She is the recipient of prestigious awards like the Statesman Award for Rural Reporting which she won twice in 1998 and 2005 and the Chameli Devi Jain award for outstanding media person for her investigation series on Dow Chemicals. She co-authored the book “To The Last Bullet - The Inspiring Story of A Braveheart - Ashok Kamte” with Vinita Kamte and is the author of “The Mighty Fall”.)



Vikram R Parkar

3 years ago


shailesh gandhi

4 years ago

Congratulations to Vinita Deshmukh, Vijay Kumbhar and Moneylife. Persistent commitment has paid off.


4 years ago

Excellent stuff. Keep up the good work. They should also streamline the process of issuing passports. Some get in one weeks time and for others it takes over two months.

R Balakrishnan

4 years ago

This is great. Kudos to Vinita Deshmukh and Moneylife. Getting the draft etc was a painful thing. Confusion about amounts etc. Online is great.

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