NEWS TODAY
Date : 14-Sep-2012
1.
DISEL /LPG PRICE GOES UP :
Government
has decided to hike diesel prices by 5 Rs; and restrict subsidized LPG
Cylinders to 6 per year. Beyond that, at Market Rate cylinders will be
available without limit.
MY COMMENTS : No
one will mind such increases if they take place
in small increments and if they come when General Inflation is at LOW
LEVELS. Both these conditions are not satisfied at this point of time. This
increase comes at a time, when inflation is already is very High; and the
increase itself is quite High. This increase in diesel price is bound to increase
the level of Inflation.
Increasing
Prices of sensitive, Basic commodities – is not the solution. Increasing their availability
is. The Government must permit Reliance, Cairn, ONGC etc – to go for ENERGY
HUNT without any restrictions. In India, forest clearances, Environmental
clearances etc take AGES for almost no earthly reason. Look at the petrol /
Diesel / LPG price Hikes from this angle. Why should the Poor and Middle class
pay for Government’s own RED TAPE in according these clearances?
As
we know - the COALGATE imbroglio is significantly vitiated by the NON-GRANT of
these essential clearances to many coal Block allocated companies, which
therefore could not produce coal, and therefore electricity too. Government of
India must decide once for all – that for Petrol / Gas exploration and
production, these clearances will be automatic. But, the exploration companies
must be made to create twice the number of trees that they need to fell. They
should monitor this and do it responsibly themselves. What we need in all this
is not Government action to monitor it – but the creation of a strong Regulator
for the Oil and Gas Industry.
2.
K.M.BIRLA ON POLICY PARALYSIS :
Many
Industry leaders have come out openly against the Policy Paralysis. They don’t
really do it always – and in general, they also look like participants in Governmental
doings and un-doings. But, the extreme Policy Paralysis of recent years has put
them also in Dock. Therefore, the outcry from Industry leaders.
The one who continues not to criticise Government seems to be – RATAN TATA.
The
latest to join this Critic Bandwagon is K.M.Birla. He may not specifically say
so – but lack of Transparency and Red Tape are at the back of all problems in
India.
Corruption
is definitely at the back of Lack of Transparency. Many Coal Block allotments
seem to be mired in Nepotism. And Politicians unabashedly justify their
Nepotism. Political Ethics are at the LOWEST EBB. Unlike 2 G, where the Prime
Minister, could justifiably blame the ALLIANCE COMPULSIONS, the game in
CoalGate seems entirely at Congress Gates –as of now.
3.
STOCK MARKET IN GREAT MOOD - THIS IS THE WAY
The
Indian stock Market always listens to FOREIGN NEWS more intently – and not much
to Indian News. The Foreign News right now is not Bad.
With all depressing News within India, this optimism in future is quite the thing needed –
to keep the Investors’ health and optimism in the future. This is the way, Indian stock Market must perform - since India Growth story, in the medium / long term - is still strong.
Right
now, the SENSEX today has gained a full 375.7 points (2.08%); and NIFTY has gained 117.55 points (2.16%) – despite all
bad local News.
RBI’s
stand on Interest Rates is really depressing from Growth view point. Yet, Banking
stocks are also gaining ground – in the hope that RBI will look at IIP
GROWTH numbers more closely, see the
extreme damage that IIP is suffering right
now – and perhaps decide to BAT FOR GROWTH soon.
Man
lives on Hope. Investors live on Hope – that Government and RBI will do something
– just anything - to prop up their Hope.
The
latest news is August Inflation numbers are higher than July. So, given the RBI’s
passionate attachment to these Inflation numbers – RBI’s support to Growth may not come
too soon.
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