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Showing posts from April, 2013

Man mohana bade Jhoothe!!

I was hearing this famous rendition by Lata ji and the other elite club. (Link to Youtube version) I was suddenly awestruck at the Mukhda of the song "Man mohana" bade Jhuthe.. It made me question, who was the song addressed to? It is about "Man" .. the hindi equivalent of 'Heart". But it stuck me again that .. it no longer is intended at "man"...  I need to add "man mohana" .. which actually means dear heart. And then it stuck me again that, even that is incorrect... it actually meant "man mohan" a bade jhuthe... Haa .. I see now, you get it.. "Manmohan"a bade jhuthe.. The rendition was developed 50 years ago protesting against, our Prime minister Mr. Manmohan singh's silence on coal gate scandal, 2G scandal, Hydro power allocation scandal, CBI file read/modify scandal, Land allocation scandal, Chopper procurement scandal, ... ok ok I will stop!! What a song "man mohana" bade jhuthe .. OK, sorry for the typo "…

Price rise ... A shot in the hand!

In the previous article I mentioned that the Price rise is a shot in the arm and now I also want to justify that it is a shot in the hand. Even while I was contemplating to file a PIL against this price rise, Haryana Govt. whose electricity distribution companies would be affected by this price rise has already challenged the verdict. Just to brief the context again .. the Central Electricity Regulatory Commission, the authority to regulate the price of electricity, has allowed for a pass through of the additional cost of coal in the existing price of electricity. This is considered to a big shot in the arm and hence all the power generation companies' stocks also soared. (Click here for my previous article on this!) If we look at it in detail, there is more to it than just a good news. When Adani bid for the project, though the company had an option, they bid for a fixed tariff that is independent of the fuel prices (Incidentally all the others who lost the bid had opted for a flexib…

Price rise .. A shot in the arm!

Couple of days ago, one of my friends was asking me what would be the solution to the ailing power sector crisis in India. If we drew Porter's five forces model for the Power sector presently every force is dragging the sector down. Regulatory issues, Human resource issues, Lack of funds, lack of fuel, In adequate price and more to say the least. It looks like a vicious cycle with each leading to the other. So, what was one thing that could be done to revive the sector? The answer was precisely given by the Central Electricity Regulatory Commission by allowing a pass through of increased fuel cost and agreeing to revise the power purchase agreement. No wonder, the stocks of the listed power generating companies soared by more than 5% in a single session, due to the hopes created by this judgement. Infact, this may be the single regulation that will have the maximum impact on the sector. But, how does it impact? When a power generation company is about to set up the plan…