Two successive droughts and a bountiful rain this year has brought back the agriculture economy into the mainstream agenda. Record area sown this kharif season and hopes of a bumper crop provides lot of relief to the policy makers and to the whole country. Yet, agriculture sector continues to receive step motherly treatment with corporate … Continue reading Agriculture Sector – Will It Get Its Due.??
The power ministry’s initiative, UDAY, to improve the financial and operational health of state distribution companies is not exactly new. Yet, it is novel since for the first time, the scheme links the financial benefits to operational milestones. UDAY, Ujjawal DISCOM Assurance Yojna, aims to strengthen the weakest link in the power sector supply chain, … Continue reading UDAY – Will the Discoms Rise Now..??!
Reliance Communication is in the middle of a business portfolio realignment with agreement to sell majority stake in its towers business. This, along with its earlier decision to form a JV with Aircel, are geared towards reducing its debt burden. However, the company is giving up major controlling stake in the businesses and may make the … Continue reading Reliance ADAG – In the Middle of Business Realignment..
The buyout of Essar Oil (98% stake) by Rosneft and its partners at a total value of nearly $ 13 bn is a landmark deal which opens up a whole new market for the buyer. The Essar refinery and its retails outlets would become the first to be run by foreign operators and can change the … Continue reading Rosneft-Essar Deal – A New Beginning For Indian Refining Industry..
The award of Nobel Prize to Oliver Hart and Bengt Holmstrom for economic science brings to light the concept of ‘Contract Theory’, hardly heard so far, let alone be understood..! As per the survey by the institution awarding the prize, 56% of the people did not know about ‘contract theory’. A brief attempt to understand … Continue reading Economics Nobel Prize – Understanding 'Contract Theory'..
Government’s notification last week to set up a public debt management cell (PDMC), to be converted into PDMA in two years, is one more step ahead in financial sector reforms. Contrary to perception, the idea had been floating around for more than a decade with a committee submitting its report in 2008. The only difference … Continue reading Understanding Public Debt Management Agency..
Global economy continues to remain under firm grip of debt as per an IMF report published earlier this week. As per the report, global non-financial debt has risen to an all time high of $152 trillion whereas Debt/ GDP ratio stands at 225%. And the culprit, it says, continues to be private sector debt in advanced … Continue reading How bad is Global debt overhang – IMF Report.
The conversion of ABG Shipyard’s preference shares into equity by ICICI Bank yesterday sets the stage for takeover of company by the lenders. The fate of the company is similar to that of another private sector ship building company Bharti shipyard and of numerous other ship building companies going bust globally, especially China. It would … Continue reading ABG Shipyard – Boom to Doom..
The MPC (Monetary Policy Committee) decision to cut rate by 25 basis points in its first ever meeting today, also the first under the new governor Dr Urjit Patel, appears not entirely convincing from inflation control perspective. Yet this would bring cheers to both corporate and retail borrowers and hopefully, the clamour for rate cut would … Continue reading RBI rate cut – Is it justified.??
The initiation of discussion on closure/revival of sick PSUs over last few months has brought a chronic issue back on the agenda. The exercise has the potential to considerably reduce the drain on government funds estimated at over one lakh crore so far and unlock blocked government resources in the form of land and other valuable … Continue reading Sick PSUs – Way forward…