Towards Efficient Electricity Market (Part III)

After the creation of single market for manufacturing and services through GST, for agriculture through E-NAM (still, work-in-progress), it is the turn of electricity market. CERC (Central Electricity Regulatory Commission) released a draft proposal last month whereby buyers and sellers would move from current bilateral Power Purchase Agreement (PPA) to a single electronic platform. The … Continue reading Towards Efficient Electricity Market (Part III)
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Public Sector Enterprises – Boon Or Bane..??

Recent announcement of listing of six more central public sector enterprises (PSEs) by the government brings some light to these companies. Even though PSEs are perceived as inefficient, loss making behemoth, large numbers of them are running very efficiently even after meeting many government socially driven norms and making substantial profits. This is also borne … Continue reading Public Sector Enterprises – Boon Or Bane..??
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Solar Power In India – An Overview

Solar power in India received a setback with the cancellation of a tender for installation of up to 5,000 mw of solar power plant recently. Lack of interest in the tender is being attributed to inadequate financial incentive and sharp drop in price being quoted which do not appear sustainable. While, this may mean some … Continue reading Solar Power In India – An Overview
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Bank Analysis – State Bank of India (Part II)

The third group of bank’s operations is international banking with global balance sheet of over Rs 4 lakh crore and net profit of Rs 1,400 crore. While the profitability looks low, it is not unique to the bank. International banking operates on rather thin margins, that being one of the reasons for global financial crisis … Continue reading Bank Analysis – State Bank of India (Part II)
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Reliance Communications – Analyzing The Failure..

Reliance Communications’ plea to NCLT (National Company Law Tribunal) to proceed with insolvency process marks the demise of another telecom company. The insolvency plea was filed against RCom by Ericson, an operational creditor, in May’18 which has also filed some more cases against the company and its chairman. While the company cannot be blamed for … Continue reading Reliance Communications – Analyzing The Failure..
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Budget – Revenue & Expenditure Analysis (Part II)

Against total receipt of Rs 20.8 lakh crore, government is projected to spend nearly Rs 27.8 lakh crore in FY20. Other than interest payments, broad areas which account for maximum expenditure are Defence, Subsidies and rural & agriculture sector. These three heads, together, account for almost Rs 9 lakh crore or one-third of government’s total budget. Here is a look at the details of various government expenses. Continue reading Budget – Revenue & Expenditure Analysis (Part II)

Insurance Industry in India – An Overview

Insurance sector in India appears to be a passive player despite sitting on a large corpus, almost one-fourth the size of the entire banking industry. A reason is that Life Insurance Corporation, the public sector insurance behemoth is not listed and therefore its financials does not receive much attention in the mainstream media. To resolve … Continue reading Insurance Industry in India – An Overview
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Monetary Policy – Is the Rate Cut Justified??

The monetary policy committee’s decision today to cut rate by 25 basis points doesn’t look surprising since CPI inflation has fallen from 3.4% in Oct’18 to as low as 2.2% in Dec’18. However, a closer analysis of different price components reveals that the committee may have taken a bait which was not called for. It would … Continue reading Monetary Policy – Is the Rate Cut Justified??
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