Indian Economy: News and Discussion (Apr 1 2011)

[Vipul]

No more weekly inflation number.

Now there will be no weekly inflation number. The Government has decided to bring in the wholesale price index (WPI) only on a monthly basis. WPI is also known as the headline inflation number. The Cabinet Committee of Economic Affairs (CCEA) on Tuesday approved the periodicity.

At present, there are two sets of wholesale price index. One consists of price movement in primary articles (including food and fuel) and is released on every Thursday. The other includes price movement for primary articles, fuel and manufactured goods on monthly basis and is released as monthly WPI. The monthly data are released usually on the 12th day of the next month.

Mr P.K Chaudhry, Secretary, Department of Industrial Policy and Promotion, told Business Line "weekly data represent just 25 per cent of the commodities in a basket. But with the monthly data we'll be able to give a comprehensive picture". Less frequency, but more reliable data, will help us project a clear picture, he added.

According to a source, there has always been a feeling that weekly data are more frequent but they are not reliable. Secondly, monthly data are a worldwide practice. So releasing monthly data will be more with the global trend, he added. This change is based on the recommendations of the working group on WPI. Earlier, the CCEA, on October 19, 2009, decided to release WPI for primary articles and fuel on weekly basis. It was said that the WPI for primary articles and commodities in Fuel, Power, Light and Lubricant Group would facilitate weekly monitoring of the prices of agricultural commodities and petroleum products which are sensitive in nature.

[Prem]

http://www.bloomberg.com/news/2012-01-2 ... nergy.html
Solar Cheaper Than Diesel Making India’s Mittal Believer: Energy
Phinally !!!

India is producing power from solar cells more cheaply than by burning diesel for the first time, spurring billionaire Sunil Mittal and Coca-Cola Co. (KO)’s mango supplier to jettison the fuel in favor of photovoltaic panels. The cost of solar energy in India declined by 28 percent since December 2010, according to Bloomberg New Energy Finance. The cause was a 51 percent drop in panel prices last year as the world’s 10 largest manufacturers, led by China’s Suntech Power Holdings Co. (STP), doubled output capacity. “Solar is going mainstream in India, helped by Chinese pricing,” said Ardeshir Contractor, founder of developer Kiran Energy Solar Power Pvt. Kiran, whose investors include Bessemer Venture Partners, an early financier of Skype Technologies SA, won one of the largest projects auctioned by India last month. India joins pockets of Italy, Spain and Hawaii where rising fuel costs and lower panel prices make solar pay for itself without state subsidies, New Energy Finance data show. Factories and homes in the Asian nation switch on emergency diesel-fired generators during chronic blackouts and to bridge gaps in the power-delivery grid as the government prepares a $400 billion program through 2017 to curb the shortfall and spur growth. “If they had the foresight, these factories would be replacing their diesel generators now or at least getting what they can from solar,” said Lalit Jain, chief executive officer of Moser Baer Clean Energy Ltd., which owns 100 megawatts of operating solar plants in India, Italy, the U.K. and Germany.

[uddu]

India can be a great power using more renewable energy
http://articles.timesofindia.indiatimes ... emy-rifkin

NEW DELHI: India can be a great power, ushering in a game changing third industrial revolution by utilising its renewable energy resources and collaborating with power producers and suppliers, says American economist and author Jeremy Rifkin.

"With the second industrial revolution, which was ushered in through internal combustion engine and heavy use of crude oil, being on life support, this is the right time for India to use its renewable natural resources to start the third industrial revolution," Rifkin, president of Washington-based Foundation on Economic Trends, told IANS.

"India is the Saudi Arabia of renewable energy sources and if properly utilised, India can realise its place in the world as a great power," said Rifkin.

"But political will is required for the eventual shift from fossil fuels to renewable energy."

According to Rifkin, the country can leapfrog into the third industrial revolution by creating infrastructure that allows individual buildings, houses and villages to generate energy by utilising renewable sources like solar, wind and geothermal energy.

[Theo_Fidel]

"India is the Saudi Arabia of renewable energy sources and if properly utilised, India can realise its place in the world as a great power," said Rifkin.

"But political will is required for the eventual shift from fossil fuels to renewable energy."

And money. I did an estimate on the Solar thread that we would need $1 Trillion by 2035 to go to 50% Solar+Wind+pumping storage+molten salt+heat storage. About 250,000 MW of 100% PLF power. Of course if we built 25,000 MW nuclear we would spend that amount in Uranium fuel rod imports alone over 40 years. If we built 250,000 MW of import coal our annually import bill alone will be $200 Billion per year.

Always a choice. Numbers are very clear.

[vina]

Always a choice. Numbers are very clear

Not sure if these numbers are based on time value of money. Problem with solar is that it is front ended, while the rest seem pay as you go. $1T today vs $1T over the next 40 years is incredibly different.

It is like Re 1 today vs getting Rs 1.1 in 1 year from now, which is exactly the same thing if the interest rate is 10%!

[pankajs]

"India is the Saudi Arabia of renewable energy sources and if properly utilised, India can realise its place in the world as a great power," said Rifkin.

"But political will is required for the eventual shift from fossil fuels to renewable energy."

And money. I did an estimate on the Solar thread that we would need $1 Trillion by 2035 to go to 50% Solar+Wind+pumping storage+molten salt+heat storage. About 250,000 MW of 100% PLF power. Of course if we built 25,000 MW nuclear we would spend that amount in Uranium fuel rod imports alone over 40 years. If we built 250,000 MW of import coal our annually import bill alone will be $200 Billion per year.

Always a choice. Numbers are very clear.

http://www.bloomberg.com/news/2012-01-2 ... nergy.html
Solar Cheaper Than Diesel Making India’s Mittal Believer: Energy

Why worry about money! If it is that cheap it will suck in a lot of private equity.

[svinayak]

Too much of this publicity on green energy and solar energy is mostly manufactured campaign.
This is a diversion and India cannot be some image of some publicity manager who thinks this should be the way.

[pankajs]

One thing solar energy has in its favor is that it can really help with rural electrification just as mobile service did to telecommunication. So would be a good thing IMHO.

On viability vs publicity, as I have said if the stuff is good, it will attract lots of business houses and lots of private equity. If not the stuff will just fade away. Government's role should be limited to being the enabler.

[svinayak]

There is too much of political global campaign and geo strategic in nature.

They dont want any new players in the OIL industry and also keep India away from the middle east and the Central asia access geo politically. That is what is happening in the last 30 years.

They are trying the fattery with those kind of statements on green energy production in India.

[Theo_Fidel]

Not sure if these numbers are based on time value of money. Problem with solar is that it is front ended, while the rest seem pay as you go. $1T today vs $1T over the next 40 years is incredibly different.

It is like Re 1 today vs getting Rs 1.1 in 1 year from now, which is exactly the same thing if the interest rate is 10%!

Yes, there is some impact from this but not as much as you might think. New Nuclear much has to be front end anyway. With the bonus of paying for importing fuel rods. New Coal also is both front end and fuel charges. As fuel costs escalate it kinda washes out the 10% opportunity costs.

My estimate was $5 Billion right now escalating at 10% every year to $40 Billion by 2035 annual investment. In 2035 our GDP ~ $15 Trillion. $40 Billion will be a rounding error.

[pankajs]

You are right about the politics of the Oil/Gas industry and rush to nail down fresh sources of supply is geo-strategic in nature. That would be the domain of GOI and big private players.

All I am saying is if the cost/benefit structure does favor the solar energy industry let it flourish. It will need investments and let that come from the private sector. It will not distract the government/ONGC/OIL/Reliance from their focus on the oil/gas sector.

[Theo_Fidel]

Government's role should be limited to being the enabler.

In which case I suggest we disband OIL, ONGC, and CIL. Let private equity kick out the tribal's so coal mines can start, and let private equity decided where India gets oil. Our entire oil/gas production infrastructure will be shut down as uneconomic with 100% import the very next day.

Don't kid yourself, everything is set by government policy and taxpayer cash support.

It is not that simple. Solar & Wind are both intermittent. They depend on government policies on creating pumped storage and transmission lines necessary. FYI TN is maxed out w/ respect to Wind because the transmission lines simply do not exist. Companies have been forced to idle turbines even as the grid starves for power. Some estimates show that at the new 80 meter hub height TN can generate an additional 20,000 MW of wind at 25% capacity. This is over the present 6,000 MW of capacity.

Government must decide.

[pankajs]

In which case I suggest we disband OIL, ONGC, and CIL. Let private equity kick out the tribal's so coal mines can start, and let private equity decided where India gets oil. Our entire oil/gas production infrastructure will be shut down as uneconomic with 100% import the very next day.

As far as I know ONGC/OIL/CIL are viable, in fact they make good money. What makes you think they are uneconomical?

I know for sure that ONGC sells crude below international market price (i.e Subsidizes the GOI and hence the consumers) and still makes very decent profit.

Don't kid yourself

Once you have looked at the data for ONGC/OIL/CIL you will know who is kidding whom.

[pankajs]

Subsidy outgo restricts ONGC's profit growth in first quarter

New Delhi, July 28: More than double subsidy outgo has hit ONGC's bottom line for the June quarter. But for the subsidy outgo of Rs 12,046 crore, ONGC's profits would have been higher by Rs 6,878 crore.

The company has reported an 11.9 per cent growth at Rs 4,095 crore in its net profit for the quarter because of increase in APM gas price and higher crude oil production.

ONGC, besides Oil India, is an exceptional exploration company that did not seem to benefit from soaring global crude oil prices. Public sector upstream companies have to extend discounts to their oil marketing counterparts such as Indian Oil, Bharat Petroleum Corporation, and Hindustan Petroleum Corporation for selling petroleum products at a Government controlled price.

Realisation on crude oil

Mr A.K. Hazarika, Chairman and Managing Director, ONGC, said, “The net realisation on crude oil stood at $48.76 a barrel as against the gross realisation of $121.29 a barrel because of the discounts.”

I think this report is not too old. To summarize.

For the Qtr(3 months) under consideration
Net Profit : Rs 4,095 crore
Subsidy extended : 12,046 crore

Far from being uneconomical, it is actually financing the government by extending Subsidy. I could pull out the data for OIL/CIL but I dont think it is worth the effort.

[Theo_Fidel]

Yes, I have looked very closely at how ONGC & OIL account for fuel. It is far cheaper for them to import oil and charge consumers world prices. Domestic production is pegged to world prices and royalties to government are much higher. Add to that social costs of producing in India.

Cheaper to import.

[pankajs]

Yes, I have looked very closely at how ONGC & OIL account for fuel. It is far cheaper for them to import oil and charge consumers world prices. Domestic production is pegged to world prices and royalties to government are much higher. Add to that social costs of producing in India.

Cheaper to import.

I don't get it. I assume their production cost has to be below "world prices" to be able to subsidize the government and yet make a profit. So how do they suddenly become "uneconomical"?

In which case I suggest we disband OIL, ONGC, and CIL. Let private equity kick out the tribal's so coal mines can start, and let private equity decided where India gets oil. Our entire oil/gas production infrastructure will be shut down as uneconomic with 100% import the very next day.

[Theo_Fidel]

Make money from Refining not production. Government subsidy is through above world royalty.

[pankajs]

Make money from Refining not production. Government subsidy is through above world royalty.

From ONGC website
http://www.ongcindia.com/download/Inves ... r_2011.pdf

The data below is for just crude oil and does not include MRPL's(Refining) data. It also does not include its international operations. ONGC is not an oil marketing company and the data is based on its production in India. The refining data is separate and is available starting page 39.

ONGC Net Profit FY11 : 18,924 cr (Page 26)
Total Crude Under-recovery FY11: 24,892 (Page 27)

Crude Price realization (US$/bbl) for FY11 (Page 27)
Realizable : 89.11
Discount : 35.64
Realized : 53.76

The selling price of crude to oil refiners is 53.76 $/bbl, much below the International price, and still making profit. So how is ONGC's (oil & gas) operations uneconomical?

[Theo_Fidel]

So how is ONGC's (oil & gas) operations uneconomical?

Compared to international ROI they are very marginally economic. International multiplier is typically 8 to 10. Means a lot is not being done to international standards. For instance, fields are being flogged with very low investment and hence very low recovery.

Also note these companies are sitting on upwards of 100 tcf gas in the Krishna fields without the means to invest in developing it. If they invested per international norms they would go negative immediately.

[pankajs]

So how is ONGC's (oil & gas) operations uneconomical?

Compared to international ROI they are very marginally economic. International multiplier is typically 8 to 10. Means a lot is not being done to international standards. Fields are being flogged with very low recovery.

So it is inefficient. One of the reason my recommending that the government not get into a non-strategic sector like solar energy and just be the enabler. Let is decide on the policy, the incentives, the tax breaks, etc. We are an energy deficit country so let the market drive the investments. In the long run it would make the sector much more efficient.

[Theo_Fidel]

So it is inefficient. One of the reason my recommending that the government not get into a non-strategic sector like solar energy and just be the enabler. Let is decide on the policy, the incentives, the tax breaks, etc.

Yes, by those rules all our Nuclear would shut down for instance. When you consider our Uranium ore (very very poor) extraction consumes 1000 MW of power or various types to produce 2000MW of domestic fuel electricity. All our oil will be imported from international standard fields. Coal too will all be imported.

In fact this is happening already.

[pankajs]

OK boss. That is it from me on this. By the way most of our industrialist, the ones who need coal and that includes SAIL, have acquired or are in the process of acquiring coal fields abroad.

[Theo_Fidel]

Meanwhile...

One of those foreign funds was my ICICI account...

http://online.wsj.com/article/SB1000142 ... 01538.html

The Indian rupee punched through 50 to a U.S. dollar for the first time in 10 weeks, a sign that a raft of measures to support the currency are working—for now, at least—after a dismal performance in 2011.

Foreign funds have pumped in a net $4.5 billion into the Indian debt and equity markets so far in 2012, more than half the net inflows of $8.3 billion seen in all of 2011.

[Suraj]

Mine too I remitted money at the peak Rs.53.xx and opened some fixed deposits @8.5% . Wouldn't be surprised if remittances for the fiscal year exceed FII+FDI thanks to favourable policies.

[shiv]

cross post from http://forums.bharat-rakshak.com/viewto ... 3#p1233753

peer group of countries.

You are right. Plenty of argument here. What parameters are chosen to select a "peer group" for India. Actually, India is basically peerless.

But there is a curious geopolitical dynamic at work here.

If you look at an "ideal fair world" Indians would be interested in uplifting their people and other countries would not choose to use sanctions, arming of neighbors and other means to slow India down.

But it is neither an ideal nor a just world. What we find is a world that deliberately chooses to put hurdles in India path after which that same world reaches judgement about the "rate at which India is doing something" and say "Hey India is not keeping up with its peer group." The right response in my view is to tell those people to stuff their opinions where the sun don't shine.

[member_22539]

cross post from http://forums.bharat-rakshak.com/viewto ... 3#p1233753

peer group of countries.

You are right. Plenty of argument here. What parameters are chosen to select a "peer group" for India. Actually, India is basically peerless.

But there is a curious geopolitical dynamic at work here.

If you look at an "ideal fair world" Indians would be interested in uplifting their people and other countries would not choose to use sanctions, arming of neighbors and other means to slow India down.

But it is neither an ideal nor a just world. What we find is a world that deliberately chooses to put hurdles in India path after which that same world reaches judgement about the "rate at which India is doing something" and say "Hey India is not keeping up with its peer group." The right response in my view is to tell those people to stuff their opinions where the sun don't shine.

Hello, my first post here:

I understand that trading with Porkistan has certain benefits to offer us, but wouldn't it also create a lobby in India (something akin to Bollywood, but only much more powerful) that would hamper any punitive action that we take regarding Porkistan, if and when the next terror attack happens. Even if whatever actions we take are not very productive, facilitating more terror acts would be unfortunate in my opinion. Along with their nukes, it will be another thing they draw courage from with regard to terror and retaliation from India.

[shiv]

cross post from http://forums.bharat-rakshak.com/viewto ... 3#p1233753

You are right. Plenty of argument here. What parameters are chosen to select a "peer group" for India. Actually, India is basically peerless.

But there is a curious geopolitical dynamic at work here.

If you look at an "ideal fair world" Indians would be interested in uplifting their people and other countries would not choose to use sanctions, arming of neighbors and other means to slow India down.

But it is neither an ideal nor a just world. What we find is a world that deliberately chooses to put hurdles in India path after which that same world reaches judgement about the "rate at which India is doing something" and say "Hey India is not keeping up with its peer group." The right response in my view is to tell those people to stuff their opinions where the sun don't shine.

Hello, my first post here:

I understand that trading with Porkistan has certain benefits to offer us, but wouldn't it also create a lobby in India (something akin to Bollywood, but only much more powerful) that would hamper any punitive action that we take regarding Porkistan, if and when the next terror attack happens. Even if whatever actions we take are not very productive, facilitating more terror acts would be unfortunate in my opinion. Along with their nukes, it will be another thing they draw courage from with regard to terror and retaliation from India.

Arun Menon - this is the wrong thread. I will post a reply in the Pakistan thread.

[Theo_Fidel]

Economically there is no interest in becoming a Singapore. India has not and never will be a Singapore type 'parasitic' economy. Historically India has been the source of luxury goods and a source of great wealth for the rest of the world. When India gets richer the world will get richer.

The key question is when will our GDP per capita approach first world levels. For large economies this typically happens when certain critical indicators are crossed. For instance in college education, health indices, income levels, capital value, etc. The key one for first world type income is disposable income which needs to be 60%.

On GDP the World bank uses a cut off of ~ $12,000 for a high income country. I'd go with a $8,000-$10,000 income level for India as our disposable income will cross 60% at $8,000. Considering present income level of $2000 where much of essential needs are being met, most of the next $6000-$8000 will be pure gravy, i.e. disposable income.

At an average growth rate of 6% this will take about 30 years. 2040
At an average growth rate of 8% this will take about 20 years. 2030
At an average growth rate of 10% this will take about 15 years. 2025

So somewhere between 2025 and 2035. At which point our GDP ~ $10 Trillion or so. About 5 times. Lets keep in mind our GDP in 1996 was roughly $350 Billion. 15 years later in 2012 our GDP is 5 times larger at $2 Trillion. It may happen quite rapidly. We are present a solidly middle income country, poverty wallah wails not withstanding.

Pakistan is a Low income country and has seen income decline for 4 years now. The key statistic to watch is investment levels.
India investment - 35%+ of GDP and rising.
Pakistan investment - 13%+ of GDP and falling.
The two countries not in the same league economically.

Most research has pointed out that just our demographic dividend, which has just begun BTW should give us 2% boost over the next 40 years, as the number of workers rises from 400 million to 900 million and from 40% of population to 70% of population. So an 8% is very reasonable and even 9%-10% achievable.

BTW the next transition is to upper middle income at about $3,500 per capita. We are about 4 years from that marker. That is the only thing I'm watching right now.

[Vipul]

The gravy (pure disposable income) is atleast $1 Trillion Opportunity:PWC.

PricewaterhouseCoopers (PwC) today said India's middle class will grow in size to become a USD 1 trillion opportunity to be tapped for various consumer-oriented industries.

The country's total population will be around 1.36 billion by 2021 of which middle class will account for 570 million. The demographics will result in higher aspirations which will have to be served by companies, the consulting firm's Executive Director, Shashank Tripathi, told reporters here.

Companies in the retail and consumer goods, telecom, financial services, industrial products, and healthcare and pharmaceuticals space can benefit from this opportunity, he said.

Even though Asia's third-largest economy will urbanise faster, a majority of the demand for this USD 1 trillion opportunity will come from the rural areas, Tripathi said, adding that aspirational people indulging in vocations beyond agriculture will contribute to the demand.

Companies will have to pull up their socks and incorporate changes in product designs to make more disruptive offerings, work towards creating scalable business models and create a trust around the brand for leveraging on the opportunity, he maintained.

[Singha]

to give you one example, everyone and their uncle is entering the business of water purification, ranging from low cost candlestick models to higher cost UV to highest cost RO systems. even tata's have a brand called Swach now...bajaj is doing something...more are entering. these cos have a strong brand and retail channel presence but no scientific background in water purification.

[Prem]

to give you one example, everyone and their uncle is entering the business of water purification, ranging from low cost candlestick models to higher cost UV to highest cost RO systems. even tata's have a brand called Swach now...bajaj is doing something...more are entering. these cos have a strong brand and retail channel presence but no scientific background in water purification.

Water is one of the biggest businesses in the global economy. Africa will be next big market for drinking water.

[VikramS]

to give you one example, everyone and their uncle is entering the business of water purification, ranging from low cost candlestick models to higher cost UV to highest cost RO systems. even tata's have a brand called Swach now...bajaj is doing something...more are entering. these cos have a strong brand and retail channel presence but no scientific background in water purification.

Unless you are planning to do nuclear fusion, most businesses do not need an existing scientific background. Most of the technologies being used are well understood. The innovation if any is in lowering manufacturing costs, operational costs and better quality of results.

[Rahul M]

I am moving the above to development statistics thread.

[neel]

No more weekly inflation number.

Now there will be no weekly inflation number. The Government has decided to bring in the wholesale price index (WPI) only on a monthly basis. WPI is also known as the headline inflation number. The Cabinet Committee of Economic Affairs (CCEA) on Tuesday approved the periodicity.

At present, there are two sets of wholesale price index. One consists of price movement in primary articles (including food and fuel) and is released on every Thursday. The other includes price movement for primary articles, fuel and manufactured goods on monthly basis and is released as monthly WPI. The monthly data are released usually on the 12th day of the next month.

Mr P.K Chaudhry, Secretary, Department of Industrial Policy and Promotion, told Business Line "weekly data represent just 25 per cent of the commodities in a basket. But with the monthly data we'll be able to give a comprehensive picture". Less frequency, but more reliable data, will help us project a clear picture, he added.

According to a source, there has always been a feeling that weekly data are more frequent but they are not reliable. Secondly, monthly data are a worldwide practice. So releasing monthly data will be more with the global trend, he added. This change is based on the recommendations of the working group on WPI. Earlier, the CCEA, on October 19, 2009, decided to release WPI for primary articles and fuel on weekly basis. It was said that the WPI for primary articles and commodities in Fuel, Power, Light and Lubricant Group would facilitate weekly monitoring of the prices of agricultural commodities and petroleum products which are sensitive in nature.

This new WPI policy is broadly consistent with the new CPI policy. I am pleased with the general direction of the official price statistics policy, especially since we will have seasonally-adjusted annualized inflation numbers with a relatively frequently updated basket starting from this month's measurement (to be released 2-3 weeks hence).

[Prem]

Indian Rupee Jumps to 11-Week High on Fund Inflows: Mumbai Mover
http://www.businessweek.com/news/2012-0 ... mover.html

Jan. 27 (Bloomberg) -- India’s rupee climbed to an 11-week high after the central bank eased monetary policy for the first time since 2009 to support economic growth, prompting investors to boost holdings of local stocks and bonds.The currency completed a fourth weekly advance, the longest winning streak since April, and headed for the best month on record. Overseas funds added $1.56 billion to investments in Indian stocks this month through Jan. 24 and boosted ownership of debt to a record $29.5 billion, exchange data show. The Reserve Bank of India cut reserve requirements for lenders by half a percentage point to 5.5 percent on Jan. 24.“The central bank’s decision is giving optimism that India’s fundamentals will improve and make the rupee an attractive investment,” said Roy Paul, deputy general manager of treasury at Federal Bank Ltd. in Mumbai. “The rupee should advance further in the short term.”The currency appreciated 2.1 percent this week to 49.315 per dollar in Mumbai, according to data compiled by Bloomberg. It reached 49.2962 earlier, a level not seen since Nov. 8, and rose 1.6 percent today, the biggest gain since Dec. 16.The rupee strengthened 7.6 percent this month in Asia’s best currency performance. It tumbled 16 percent in 2011, the region’s biggest exchange-rate loss, as Europe’s debt crisis fueled fund outflows from emerging markets.

[chetak]

to give you one example, everyone and their uncle is entering the business of water purification, ranging from low cost candlestick models to higher cost UV to highest cost RO systems. even tata's have a brand called Swach now...bajaj is doing something...more are entering. these cos have a strong brand and retail channel presence but no scientific background in water purification.

Unless you are planning to do nuclear fusion, most businesses do not need an existing scientific background. Most of the technologies being used are well understood. The innovation if any is in lowering manufacturing costs, operational costs and better quality of results.

Most of these water purification ventures are completely out sourced to some already existing players and just branded with a well known company's logo.

The large companies simply set up and remote manage the quality and the production processes. Frequent on site audits will keep the supplier on his toes. Sometimes all material including the raw water and branded bottles will be supplied to the vendor.

The large and branded companies will get economies of scale by leveraging their existing distribution networks and supply chains. Brand recognition and recall is already a given.

[abhischekcc]

This water business, just like the education business, is one of the abiding tragedies of democratic India.

In both cases, it is the government's job to provide the service - of reasonable quality at reasonable price (our taxes). GOI takes our money but does not give us service. This is where the private sector steps in. But they charge us more money, on top of the taxes we have already paid. I am questioning why should the people of India pay taxes at all?

This is another scam.

[Singha]

I am not talking about the bottled water business but water purification home eqpt.

the only established local player with domain knowledge was eureka forbes...their product history is long
some others like Kent or Pureit are from outside india and have technology
folks like tata and bajaj source the picks n shovels tech from other cos incl mnc's and select the plastic casings, pipes etc and manufacture+test somewhere.
moulded plastic prototypes can be sourced from china or korea. koreans charge high but deliver on time, on quality. the chinis are um....

eureka forbes is like the HP of the business. all the old timers have done a stint there. they tried to move their r&d to haridwar co-located with production, didnt work, so moved it back to blr.

in some countries like thailand and perhaps mehico the govt does not attempt to make the tap water as drinkable, instead containers of bottled water are sold at subsidized rates or dispensed at low cost from dilli mother dairy type booths. even the poorest people in bangkok hence get access to pure water for drinking and cooking...in india too the villagers have taken to buying water in those large transparent bottles available in most shops.

[member_21708]

Foreign fund inflows into India to increase on weaker dollar
http://economictimes.indiatimes.com/fea ... 670185.cms


India world's fourth largest steel maker in 2011: WSA
http://economictimes.indiatimes.com/new ... 674702.cms

[abhischekcc]

Theo,

Have you studied whether renewables can actually replace ALL fossil fuels or not?