TataPower has offered to give a 51% stake of their Rs 6500 cr Mundra UMPP (which uses imported coal), for just Re 1 to the Guj Govt/Centre if they agree to buy power at "higher" rates.Singha wrote:Even for coastal umpp imported coal is far cheaper than natgas..cleaner obviously for gas.
India’s banks may be in deep trouble over bad loans, but there is another side to this coin: big lessons are being learnt by India Inc, which is facing a gut-wrenching, cleansing process that is unprecedented in our history of crony capitalism. For almost the first time in decades, capitalists are learning that there is no free lunch in capitalism.
When did you last hear that a big chunk of the domestic steel industry is about to be liquidated – most of the 12 loan defaulters being referred to the bankruptcy courts are steel companies? Their promoters will probably be left with nothing in the end. When did you last hear a proud Ambani seeking a rescheduling of his loan and more time for repayment? When did you last hear of big name promoters being forced to sell off their best businesses to retain what they can of their former business empires? In the past, they left banks with their worst businesses, while saving the best for themselves. When did you last hear of a liquor baron, who liked strutting around with young models, living the life of a beleaguered fugitive in London, doing time in courts and extradition hearings?
The names are like a roll-call of India Inc. The Ruias, once compared to the Ambanis in terms of ambition, will be losing two of their biggest businesses – oil refining to Rosneft, and steel to liquidation proceedings. The Tatas are shedding some of their overseas steel businesses bought at the top of the steel cycle just before 2008. They sold their urea business in India, and are in the process of shedding more businesses in India (including possibly telecom). Andhra Inc’s proud standard bearers – creations of the United Progressive Alliance (UPA) era when Andhra supplied the bulk of Congress MPs – went into default in many cases, and have had to divest assets: GMR has sold off coal, power and road assets worth more than Rs 10,000 crore, and is now in the process of unloading 40 per cent of its crown jewel, Delhi airport, to a French-led consortium. GVK, which runs Mumbai and Bengaluru airports, has exited Bengaluru completely. Jaypee Group, whose JP Infra is being liquidated, sold its hugely profitable cement business to the Birlas under lender pressure. DLF, the largest listed realtor, has destroyed more value than it has created over the last few years. It has been selling more assets to reduce debt than homes to buyers.
In three years of the Narendra Modi government, India Inc has been drenched by torrential conditions when earlier it barely managed to get its feet wet, safe under the umbrella of crony relationships.
Oh, read it all.But here’s the big gain: on the other side of this great fire-sale of its assets, India Inc will emerge leaner, stronger – and, hopefully, wiser. It must learn three important lessons.
First, over-diversification and over-reliance on debt-funding from banks can be a double-edged sword. In favourable circumstances, you could hit the big time. If, as in 2008, you face headwinds, your entire conglomerate may crumble. There must be a better balance between equity and debt in any business. Promoters must have enough skin in the game for bankers to believe their projects are worth funding.
Second, the past assumption that friendly voices in government will bail you out is invalid. The Modi government will surely help some industries facing adverse global conditions (like steel), but it is unlikely to favour one business at the cost of another. The assumption that things will be back to normal once a government changes will not hold anymore. Even a UPA returning to power in 2019 or 2024 will not be able to go back to the 2G and Coalgate ways of allocating resources, or offering sweetheart bailouts to cronies.
Third, unless the new bankruptcy code fails to deliver, promoters cannot hope to delay the inevitable when businesses fail by dragging banks to courts. They will lose whatever skin they have in the game if they do that.
However, the biggest lesson is the one the government must learn: government-owned banks are the weak links in the chain linking cronies to easy capital. If banks themselves are not allowed to go bust – something unlikely if they are state-owned – it is not possible to assume that bankers will not go overboard with mindless lending based on policy and political nudges.
I have said this before that Namo wants to do things the right way. It would have been much easier for him to just print the money, infuse banks with fresh capital and create a bad bank with the troubled assets. USA did it, China did it so why not we?Hari Seldon wrote:x-post from Achievements dhaga. R Jaggi in Swarajya.
In Three Years Of Modi, Business Learns That India Is Not ‘Free Lunchistan’
What transparency are these chaps seeking. Advance notification of prices before public knowledge ? Does the new daily pricing structure squeeze their 'profiteering through adulteration ' model ?Also, the owners have accused companies of the lack of transparency in the daily dynamic pricing mode
GDP will double in 8-9 years thanks to GST, Union minister Suresh Prabhu says
http://timesofindia.indiatimes.com/busi ... 424232.cms"The GST aims at increasing the number of taxpayers. And, as the tax revenue rises, the GDP will also increase. Our GDP is $2.5trillion today and in the next 8-9 years, it will grow to $5 trillion if our tax revenues increase.
Not STD but the concept of 'Circles for telecoms'JohnTitor wrote:Next, India needs to get rid of STD and "circles" for telecoms. Even the EU has scrapped roaming charges across the single market.
BEIJING: A Harvard University study has projected a dramatic fall in China's economic growth to 4.41 per cent in the coming years until 2025. On the other hand, India would perform extremely well growing at 7.72 per cent during the period, Havard's Center for International Development said in a study.
"The economic pole of global growth has moved over the past few years from China to neighboring India, where it is likely to stay over the coming decade," it said.
What is significant that even Indonesia, Vietnam, Uganda, Kenya and Mexico are expected to perform a lot better than the world's sector biggest economy, according to the report.
"China's rapid growth rate over the past decade has narrowed the gap between its complexity and its income, which researchers suggest is the harbinger of slower growth," CID researchers said adding, "The growth projections still have China growing above the world average, though at 4.4 percent annually for the coming decade, the slowdown relative to the current growth trend is significant".
Elaborating further, Ricardo Hausmann, director of CID, professor at the Harvard Kennedy School (HKS), said, "The major oil economies are experiencing the pitfalls of their reliance on one resource. India, Indonesia, and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years".
The study said that "The growth projections are based on measures of each country's economic complexity, which captures the diversity and sophistication of the productive capabilities embedded in its exports and the ease with which it could further diversify by expanding those capabilities".
The researchers emphasized that there are many steps policymakers, investors, and business leaders can take to enter more complex production to realize faster growth.
SEBI had on Friday banned foreign portfolio investors (FPIs) from issuing P-Notes where the underlying assets are equity derivatives, and ordered unwinding of existing contracts. The new norms say P-Notes are not allowed if not for hedging. “SEBI has virtually shut down PNs,” said Suresh Swamy, Partner, PwC. “P-Note unwinding may accelerate in the days to come.” Swamy believes trading could now shift offshore.
So they are projecting 7,7 % GDP growth for India and 4.4 % for China for next decade ? But the base GDP of China which is higher than India might compensate for higher GDP number even with low growth ?VinodTK wrote:Harvard study predicts dramatic fall in China's economic growth, impressive rise for IndiaBEIJING: A Harvard University study has projected a dramatic fall in China's economic growth to 4.41 per cent in the coming years until 2025. On the other hand, India would perform extremely well growing at 7.72 per cent during the period, Havard's Center for International Development said in a study.
"The economic pole of global growth has moved over the past few years from China to neighboring India, where it is likely to stay over the coming decade," it said.
What is significant that even Indonesia, Vietnam, Uganda, Kenya and Mexico are expected to perform a lot better than the world's sector biggest economy, according to the report.
"China's rapid growth rate over the past decade has narrowed the gap between its complexity and its income, which researchers suggest is the harbinger of slower growth," CID researchers said adding, "The growth projections still have China growing above the world average, though at 4.4 percent annually for the coming decade, the slowdown relative to the current growth trend is significant".
Elaborating further, Ricardo Hausmann, director of CID, professor at the Harvard Kennedy School (HKS), said, "The major oil economies are experiencing the pitfalls of their reliance on one resource. India, Indonesia, and Vietnam have accumulated new capabilities that allow for more diverse and more complex production that predicts faster growth in the coming years".
The study said that "The growth projections are based on measures of each country's economic complexity, which captures the diversity and sophistication of the productive capabilities embedded in its exports and the ease with which it could further diversify by expanding those capabilities".
The researchers emphasized that there are many steps policymakers, investors, and business leaders can take to enter more complex production to realize faster growth.
Point is the that of double standards they have when the Westerns MSM try to measure the US/EU economy and China , They try to sell their own 1.4 % growth as some thing of a terrific achievement after all the QE they do to get there and they would sell Chinese projected growth rate of 4.5 % as something terrible , Surely china has its own screw up but the West has much bigger share of problemSuraj wrote:What's the point of the above post ?
yes. there's an argument that the labor statistics mask the massive issue of underemployment as it counts anybody who left the unemployment benefits as 'employed'Singha wrote:i think US is able to measure jobs in all sectors due to employers needing to give tax returns and pay for some healthcare of the workers . so a paper trail is there. casual part timer jobs like lawn mowing, babysitting or newspaper delivery cannot be tracked.
And this thread is on the economy of India . Not west or China or their standards . Once again you are bringing discussions here that should stay in the perspectives thread . It doesn't matter if it also relates to India - the topic deals with other countries and it should be in the perspectives thread, please . There's plenty that directly focused on our economy, that gets primacy here . The Chinese can complain about the problem on their forums, we don't need to.Austin wrote:Point is the that of double standards they have when the Westerns MSM try to measure the US/EU economy and China , They try to sell their own 1.4 % growth as some thing of a terrific achievement after all the QE they do to get there and they would sell Chinese projected growth rate of 4.5 % as something terrible , Surely china has its own screw up but the West has much bigger share of problemSuraj wrote:What's the point of the above post ?
The problem with daily pricing is that the dealer does not know how much he is going to get for the fuel in stock. It increases their risk. better would have been to adjust the price once every month or even every quarter.rahulm wrote:Petrol pump strike: Dealers protest against daily price revision, call for nationwide stir on July 5 followed by one on July 1
What transparency are these chaps seeking. Advance notification of prices before public knowledge ? Does the new daily pricing structure squeeze their 'profiteering through adulteration ' model ?Also, the owners have accused companies of the lack of transparency in the daily dynamic pricing mode
Rishirishi wrote:The problem with daily pricing is that the dealer does not know how much he is going to get for the fuel in stock. It increases their risk. better would have been to adjust the price once every month or even every quarter.rahulm wrote:Petrol pump strike: Dealers protest against daily price revision, call for nationwide stir on July 5 followed by one on July 1
What transparency are these chaps seeking. Advance notification of prices before public knowledge ? Does the new daily pricing structure squeeze their 'profiteering through adulteration ' model ?
It is like Rs 2.3 lakh crore of promissory notes have been taken out of circulation., with less money circulating around - inflation falls. And hence inflation falls to a record 1.5%.Demonetised Currency Still Being Counted, Says Urjit Patel: The Reserve Bank of India is still not in a position to provide the exact amount of demonetised currency returned to the central bank, Governor Urjit Patel told a parliamentary standing committee on Wednesday. Counting "is still on" and the information will be provided "at the earliest," Patel said. He added that the total money in circulation now is Rs 15.4 lakh crore against Rs 17.7 lakh crore in November last year when Prime Minister Narendra banned high value notes in an attempt to battle black money and corruption.
In fact if one looks at the posts last year and two years back during the may/june time frame., there was so much whining about Toor Dal prices. And now the whine is about "poor farmer" who cannot sell toor dal at a profit because the prices crashed!Retail Inflation At Record Low: Official data showed on Wednesday that India's annual retail inflation eased to a record low of 1.54 per cent during June, while the country's factory output growth also slowed to 1.7 per cent in May. The June retail inflation rate fell when compared with May, when it prevailed at a higher rate of 2.18 per cent. According to data released by the Central Statistics Office on Consumer Price Index, retail inflation was dragged lower by a sharp fall in prices of food items like pulses, vegetables and other perishables. The current inflation rate is the lowest since the series began in 2012.
And who were the scamsters?When prices of dal or pulses kept rising through the early summer of 2015, this was initially seen as a natural fallout of adverse weather conditions. But once the monsoons subsided, prices unexpectedly went through the roof. That was when dal prices hit the headlines in newspapers and dominated discussion on prime time television news. The union government swung into action – first by cracking down on hoarders and announcing that it would import more pulses and then, by increasing the minimum support price (MSP) of two major pulse crops in a bid to encourage farmers to grow more pulses. Gradually, the prices stabilised and the issue disappeared into the news hole, far from public memory.
It was only for those keeping a close eye on developments that the elements did not add up. In May 2015, just when Prime Minister Narendra Modi was completing a year in office, the government claimed that overall consumer price inflation had dropped to a four-month low and that wholesale price inflation had been negative for the previous six months. Only pulses bucked the trend. Even at the global level, there was either a close match or an excess supply of agri-commodities. So, was there a scam somewhere as many suspected?
Those effects are showing up in the retail food "inflation"., currently with stable food prices and a soft real estate., there is actually more money in the hands of the people which is spent in consumption - which is reflected in - FMCG!Tier I: Glencore Group, ETG Group, Edelweiss Group
• Tier II: Jindal Group comprising Dalip Jindal, Pradip Jindal, Jindal Agro, etc; Vikas Gupta, Superior Group; Manoj Agrawal; SV Agri Trade; Sharp Mint Group
• Tier III: Manoj Agrawal, Riddhi Siddhi Impex, Parth International, Gayatri Maa, Gunn Enterprises, Charles India Private Limited
There is one more nugget. Textiles. And voila: http://www.business-standard.com/articl ... 162_1.htmlThe report noted that the industry has seen the growth rate accelerating in 2016 over the previous two years, with 18 of the 22 categories recording an uptick, driven by rural markets
Now I wonder why the high positive growth of 'digestive enzymes and antacids'!!!Some important items showing high positive growth during the current month over the same month in previous year include 'digestive enzymes and antacids' 90.5%, 'textile machinery' 51.8%, 'meters electric and non-electric' 48.7%, 'jewellery of gold studded with stones or not' 36.7%, 'industrial valves of different types- safety, relief and control valves non-electronic, non-electrical' 32.8%, 'telephones and mobile instruments' 29.2%, 'aluminium billets/ingots' 23.6% and 'tea' 21.8%.
Industrial output is 1.9% despite electricity output growing 8.7% ? Since industrial growth is a statistical measure while electricity output growth is a measurable metric, this very likely suggests that industrial growth is being undercounted.Growth in industrial production fell to a three-month low in May while consumer price index (CPI)-based inflation declined below a stipulated floor of 2 per cent in June, providing the Reserve Bank of India leeway to cut the policy interest rate in August. Pulled down by capital goods, consumer durables and manufacturing, and mining, the index of industrial production expanded 1.7 per cent in May, lower than the revised 2.8 per cent rate in April. CPI inflation was down to a record low of 1.5 per cent in June from 2.2 per cent in the previous month.
Food items continued to witness deflation amid farmers distress in various parts of the country. The data came when the kharif sowing season is progressing smoothly with even pulses showing a rise in acreage.
Economists expect CPI inflation to remain lower than the mandated 2 per cent in July.
In terms of broad sectors, electricity generation expanded 8.7 per cent in May against 5.4 per cent in April. Both manufacturing and mining performed dismally. While capital goods contracted by 3.9 per cent in May after rising in April, consumer durables fell for the sixth consecutive month at 4.5 per cent in May. The new category of infrastructure and construction goods was almost flat, growing 0.1 per cent. Food prices continued to deflate at 2.1 per cent in June after a 1 per cent deflation in the previous month. An over 20 per cent deflation in pulses prices and more than 16 per cent in vegetables led the fall.
The country's annual consumer price inflation further eased to 1.54 per cent in June, helped by a fall in food prices, government data showed on Wednesday.
The rise was slower than 1.70 per cent forecast by economists in a Reuters poll, and was the lowest since India started releasing retail inflation data in January 2012 based on a combined CPI index for rural and urban consumers.
Consumer prices rose 2.18 per cent year-on-year in May.
Retail food prices fell 2.12 per cent last month from a year ago, compared with a 1.05 percent fall in the previous month.
Wearing apparel, textiles showed a negative dip in Summer. And there is a simple reason which can be confirmed by people on the ground.On the other hand, industry group 'motor vehicles, trailers and semi-trailers' at (-) 71 bps, had the largest negative contribution to IIP growth in May 2017, followed by 'electrical equipment' (-) 46 bps, 'chemicals and chemical products' (-) 44 bps, 'fabricated metal products, except machinery and equipment' (-) 33 bps, and 'beverages' (-) 20 bps in May 2017. Industry group 'wearing apparel' at (-) 14 bps, 'textiles' (-) 12 bps, and 'food products' (-) 7 bps, also served IIP with negative contribution in May 2017.
Could be. Or there is a growth in domestic consumption of electricity with several villages and towns getting more reliable electricity. It improves quality of living which is not immediately seen in industrial output.Suraj wrote:Industrial output is 1.9% despite electricity output growing 8.7% ? Since industrial growth is a statistical measure while electricity output growth is a measurable metric, this very likely suggests that industrial growth is being undercounted.
