Deutsche Bank increases domestic, NRE deposit rates

The German bank has hiked its deposit rates for domestic and NRE depositors in the range of 1.10%-1.40 % for various tenors

Deutsche Bank today hiked its deposit rates for domestic and NRE depositors in the range of 1.10%-1.40 % for various tenors, reports PTI.

For domestic depositors, the German bank will now give 9.25% interest for two to three year tenor deposits against earlier 8%, Deutsche Bank India said in a release here.

Similarly, the bank has increased deposit rates to 9.5% for three to five years tenor for domestic deposits too.

The bank will increase deposit rates in the range of 1.10%-1.40% for various tenors falling in the two to five year period in NRE accounts.


Moser Baer continues with the same old ways

After its dubious CD and DVD business closed down, Moser Baer’s photo voltaic cell business is coming under scanner. Tata Power has complained of poor maintenance support, response and poor standards. Moser will soon have to find a new product and a ‘story’.

Tata Power Delhi Distribution (TPDD) has called for "debarring of Moser Baer Photo Voltaic, for poor performance of solar projects." according to a Hindu Business Line report ( Tata Power Delhi Distribution (TPDD) is a joint venture between Tata Power Company (51%) and the Delhi government. In a letter sent to the ministry of new renewable energy, TPDD apparently said, "The performance of the solar plants installed by them has not been up to the industry standards." The letter further cited "poor response to client's complaints for rectification of faults" and the "weak operations and maintenance support" as reasons for calling for the blacklisting of the dubious company. Moser Baer Photo Voltaic is part of the Moser Baer group.

Well, this is hardly surprising to us. We had written about Moser Baer several times in the past, most notably recently, when Warburg Pincus exited Moser Baer at a huge loss (Warburg Pincus’ dud investment in Moser Baer: An honest mistake?). Moser Baer's business model has been suspect for over a decade. At the time it was producing CDRs and DVDs, at incredibly low rates, cheaper than even the world class Taiwanese counterparts. This was aided by, of course, borrowings. When you saddle a company, especially in one whose product is essentially a commodity, with lots of debt (and convoluted ideas), its interest costs alone will eat up the profits, leaving little or no room to not only service the debt but also to do any sort of business. And this is exactly what has happened. Moser Baer's performance is in tatters. It has exited from the CD/DVD business.

As oil prices have been high since 2007, Moser Baer cooked up the idea of getting into solar power-with more cash from Warburg. This was also a dubious move. And now, the reality is coming to the surface. Tata Power's letter cites a number of failures, including failure to adhere to contractual timelines leading to "tremendous delay" in commissioning of the projects, poor engineering leading to "faulty design and frequent change in layouts", quality of workmanship and high system losses leading to actual electricity generation being much less than the guaranteed generation. The company is already reeling and the current price reflects the current state of affairs. Currently, the price is Rs9.09, which is down 97%, from the 10 year all time high of Rs336. The markets woke up late in its assessment of a weakly-governed company with a dubious past. But National Stock Exchange has still not woken up. Moser is still in the futures and options segment.

According to the Hindu Business Line, the letter had been copied to as many as 87 people connected to the power industry, including the officials of the ministry of power, ministry of new and renewable energy and the various state electricity regulatory commissions.


Economy & Nation Exclusive
Power Grid to invest Rs6,000 crore on expansion in South

The investment will go towards construction of over 4,000 circuit km transmission lines spread over Andhra Pradesh and parts of Tamil Nadu, Karnataka and Maharashtra

Hyderabad: State-run Power Grid Corporation has earmarked Rs6,000 crore for expansion in the southern region, reports PTI quoting a senior official.

"Transmission lines of over 4,000 ckm (circuit km) are under construction, spread over Andhra Pradesh and parts of Tamil Nadu, Karnataka and Maharashtra. We are spending Rs6,000 crore as part of the total expansion plans in the region," V Sekhar, executive director (SRTS-I), Power Grid told PTI.

Meanwhile, the company in filing with the BSE said the board of directors of the company has approved System Strengthening-XVII in the southern region grid at an estimated cost of Rs1,508.74 crore with commissioning schedule of 33 months from the date of investment approval.

Mr Sekhar said that currently seven new 765/400KV sub- stations are under construction at Nellore, Raichur, Kurnool, Hyderabad, Khammam, Vemagiri and Srikakulam and four out of these seven stations are the latest state-of-the-art gas insulated sub stations.

He said the region has 7,213 ckm of 400 KV High Voltage Alternating Current (HVAC) and 1,910 ckm of 500KV High Voltage Direct Current (HVDC) transmission lines in operation. The region has ten 400 KV HVAC substations with a transformation capacity of 6,300 Megavolt Ampere.

For the first time in the south, a double circuit 765 KV high capacity transmission line is being constructed between Nellore and Kurnool which is capable of handling about 5,000MW. Together with Nellore-Gooty 400KV Double Circuit line, about 6,000MW is handled in the Krishnapatnam area, he added.

For strengthening the reliability of the power system in the southern region, 765 KV Double Circuit line between Kurnool and Tiruvalem (Tamil Nadu) and 400KV Double Circuit line between Gooty and Madhugiri (Karnataka) are under construction, Sekhar explained.

Mr Sekhar said the government of Andhra Pradesh would facilitate Power Grid to obtain necessary permissions, registrations and clearances from respective departments of the state.

"All these projects will be executed in the next two to two and half years schedule. Many of the projects are under execution. And some of the projects will start very shortly," Sekhar said.


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