Komal Meswani

Will India End Subsidies to the Oil & Gas Sector ?

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The EGoM (Empowered Group of Ministers), led by the Finance Minister, is slated to meet on June 7 to take a decision on fuel pricing. The key issues that are likely to be discussed and on which a decision could possibly be arrived at are: (i) retail price hikes for the four regulated fuels (petrol, diesel, LPG, kero), (ii) deregulation of fuel pricing, and (iii) transparent mechanism of sharing of the overall subsidy burden.

What will be the likely outcome of this meeting on June-7th ?
Petrol pricing is fully deregulated, (ii) diesel price is partially deregulated (till, say, a pre-determined crude level) and a definite

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How is Indian Sovereign Debt Different ?

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Unlike the West, most of Indian Government Fiscal Deficit is financed by internal holdings. India is the only one emerging market amongst the high-government deficit countries in 2009 – India. And India, with a gross general government debt to GDP ratio of over 80 percent during 2009 (see IMF(2010)), is much better able to manage a more than 10 percent of GDP general government deficit,

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FICCI calls for reduction in luxury and service taxes on tourism

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In order to enhance the country’s inbound tourism sector, industry body FICCI (Federation of Indian Chambers of Commerce and Industry) has suggested a slew of measures. Foreign tourist arrival in 2009 was down by 3.3% to 5.11 million against 5.28 million in 2008 on the back of the Mumbai terror attack in November 2008 which caused a 15% decline in the number of inbound tourists.

It has suggested for a reduction in luxury

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Short-term Power tariffs Rise sharply in March

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As per the data from Indian Energy Exchange, the short-term tariffs have increased 78% M-o-M to Rs5.77/unit in March 2010. The average merchant tariffs are at their highest level after almost six months (in August 2009, the average tariffs were Rs7.2/unit followed by a six months lull with prevailing average merchant tariff of ~Rs3.5/unit during September’09 – February’10).

The average tariffs in March’09 were more than Rs8/unit and hence, on a y-o-y basis; the March’10 average tariffs are 29% lower.

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Enterprise Wireline Tariffs to Come Down – Reliance Communication

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In an analyst call, the management of Reliance Communications have said that Wireline / Landline Tariffs are under pressure as Wireless Tariffs have fallen significantly and the company si facing pressure especially from the Enterprise Segment.

Other highlights of the call are – Although RCOM’s RPM declined 4.6% in Q310, its EBITDA margin was down 156 bp; management mentioned this was due to continued investments in network and higher

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TVS Motor’s January sales up 34%

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Chennai-based two-wheeler maker, TVS Motor Company has reported 34% jump in its January sales. The company sold total 125,578 two-wheelers during the month under review against 93,729 units in January 2009.

On domestic front, it has clocked 37% growth in January 2010 by registering sales of 109,504 units as compared to 79,729 units in the corresponding period of the previous year.

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