business

3G Funding – Borrow from RBI as liquidity condition worsens

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Liquidity condition in the system has tightened with banks borrowing heavily from the Reserve Bank of India (RBI) through its repo window. The dry up of liquidity from the system was mainly triggered by the Rs 68,000 crore payments made by telecom companies to government to acquire bandwidth for third generation (3G) mobile telecom licenses. Liquidity conditions are likely to improve as government starts spending money that it has received from the telecom companies.

Banks borrowed slightly over Rs 13,000 crore on Tuesday from the apex bank, more than double the amount borrowed on Monday. Banks borrowed Rs 5,840 crore through the repo window in the morning and Rs 7,325 crore in the second half on Tuesday.

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INDIA INC. – TIME FOR INTROSPECTION

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It started since early 80s and has now reached the Tipping Point. India is now ready with competitive spirit and full motivation for growth and ready to take up the world financially. It has apparently mastered best competitive practices in marketing, customer services and corporate governance in corporate sector, especially in services, media and banking, the three sectors projecting their success even in global recession to the outside world. Mr.Anand Mahindra said in TOI, as early as on 22nd. June, 2009, in renaming Satyam that customer concentricity, high standard of corporate governance, unimpeachable ethics form the cornerstones of the Mahindra Group.

In 2008-9, overseas investment from India was

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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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Diamond Power Infra bags Rs 117 cr Order from Gujarat Urja Vikas Nigam

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Diamond Power Infrastructure has bagged an order worth Rs 117 crore from Gujarat Urja Vikas Nigam for the supply of various products taking the aggregating order book to Rs 1,217 crore. The order needs to be completed within the next seven months. Earlier too, the company had bagged orders worth Rs 96 crore for the … Read more Diamond Power Infra bags Rs 117 cr Order from Gujarat Urja Vikas Nigam

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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Larsen & Toubro – Strong Performance + Order Book

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Larsen & Toubro (L&T) reported strong Q4 numbers marked by a 28% and 17% YoY growth in its revenues and earnings respectively. An order inflow of Rs220.6bn in the Engineering and Construction (E&C) segment was also a key highlight of the quarter. For FY11, L&T has indicated a ~20% revenue growth supported by an order backlog of Rs 1.0tn. Margins, however, are likely to moderate due to higher commodity prices. L&T intends to achieve a robust growth of 25% in order inflows during FY11. It also proposes to unlock

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