A look at the top 50 donors to political parties under the recently banned Electoral Bonds scheme reveals that the list comprises almost exclusively of companies that depend heavily on government approvals and contracts. During the court hearings, the biggest criticism leveled against the electoral bonds scheme — brought in by the Modi government five years ago — has been that it facilitated the bribing of political parties by companies in return for awarding infrastructure and mining contracts and making changes to regulations.Whether fair or not, the data provided by SBI to the Election Commission will definitely embolden this argument. According to it, the biggest contributors of money through this scheme are from sectors that depend on government contracts — such as infrastructure, construction and mining — and those that are highly sensitive to regulatory changes, such as lottery, pharmaceuticals, and large-scale manufacturing.Out of the top 50 biggest contributors under the scheme, a whopping 20 belonged to the infrastructure and construction sector (see chart). Of the top 10, 9 belongs to this category.Companies in the construction and infrastructure sector depend on government contracts — such as for building bridges and roads — for doing business.Another four companies in the top 50, including 3 in the top 13, are from the mining sector — which is even more dependent on the goodwill of those in power for their operations. Companies in the mining sector depend on the government to allocate zones for carrying out their mining activities, and for giving approval for expansion projects and so on.While these two sectors — which depend on the government for their orders — comprise around half of the top 50 donors under the scheme, the remaining half comprised companies belonging to heavily regulated sectors.These are sectors where a slight change in government regulation of law can mean the difference between superlative profits and bankruptcy, such as power generation, pharmaceuticals, logging and large-scale manufacturing.Little surprise, then, that the most generous donor under the electoral bonds was Santiago Martin’s Future Gaming and Hotel Services Pvt Ltd. Martin, who started out from Coimbatore in Tamil Nadu, is in one of the most regulated businesses of all — lottery. With donations totaling Rs 1,368 crore, Martin was the clear winner in terms of his generosity towards political parties.Similarly, 13 out of the top 50 are companies engaged in various large-scale manufacturing activities, particularly of commodities that serve as raw material for other manufacturers, such as steel, carbon black, cement, phosphorous, transformers and alcohol. The list of manufacturers also include no less than five pharmaceuticals makers. Pharmaceutical manufacturers are especially vulnerable to changes in government policy — such as the inclusion of a particular drug in price-control regime, and the disbursal of incentives and tax breaks for their various projects.The list of top donors is likely to vindicate the stand taken by the court when striking down the bonds scheme.
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