The delay has been attributed to various reasons including delivery schedule of certain components from Russia and the ongoing protests in Kudankulam against the nuclear power plant
New Delhi: The delay in commissioning of two nuclear power plants at Kudankulam has led to escalation in cost to the tune of Rs2,653 crore, reports PTI.
The approved completion cost of the Kudankulam Nuclear Power project was Rs13,171 crore, officials said.
“The completion cost is now expected to be Rs15,824 crore and the project is expected to be completed in 2012-13,” they added.
The delay has been attributed to various reasons including delivery schedule of certain components from Russia and the ongoing protests in Kudankulam against the nuclear power plant.
The total expenditure on the project till September this year has been Rs14,122 crore.
As per the original plan, the first unit was to be commissioned in December 2007, which was revised to mid-2010.
This was further revised to September 2011 when the anti-nuclear protests broke out in Kudankulam.
The first Inter-Governmental Agreement for setting up two 1000MW light water reactors was signed between India and the erstwhile USSR in 1988.
A supplement to the agreement was signed with the Russian Federation in 1998. The ground breaking for the Kudankulam project took place in September 2001 and the first pour of concrete took place in March 2002.
NPCIL and Russia’s Atomstroy Export formally inked a deal for building two more civil nuclear reactors of 1,000MW each at Kudankulam last year.
A total of 12 Russian nuclear power reactors are expected to come up in India of which six would be built between 2012 and 2017.
Analysts said that mid-caps and small-caps have underperformed their large-cap peers primarily due to concerns such as high borrowing costs, currency fluctuations and low participation from investors
Mumbai: The Bombay Stock Exchange (BSE) small-cap and mid-cap indices have underperformed their large-cap peer this year so far, as the two saw a decline of up to 37% against 21% fall in the broader market benchmark Sensex.
As per the study of indices from 31 December 2010, to 30th November this year, the BSE Small-cap index dropped by 36.94% to settle at 6,097.26 as on 30th November. The Mid-cap index shed 27.87% to close at 5,627.69 in the trade ended 30th November.
Meanwhile, the BSE benchmark index Sensex saw an erosion of 21.38% to close at 16,123.46 on 30th November, from a peak of 20,509.09 on 31 December 2010.
Analysts said that mid-caps and small-caps have underperformed their large-cap peers primarily due to concerns such as high borrowing costs, currency fluctuations and low participation from investors.
In case of a slide in the market, these are the scrips which go down faster than the frontline stocks, experts said.
During the period under review, the BSE Mid-cap index fell to one-year low of 5,459.92 on 24th November, while the Small-cap index skidded to its 52-week low of 5,914.55 on the same day this year.
The Sensex had tanked to its one-year low of 15,478.69 on 23rd November.
“In a bear market investors tend to invest in large cap stocks, while for smaller stocks they prefer to book profits.
During the times of uncertainty one witnesses greater losses in mid and small-cap counters. But when markets rally, these stocks move ahead of the frontline stocks,” Geojit BNP research head Alex Matthews said.
Marketmen also said that retail investors have large exposure in mid-cap and small-cap stocks and since last few months the retail segment activity in the market has dropped significantly. When things become worse, fears makes investors exit these stocks at lowest valuations.
The mid-cap and small-cap indices track the performance of companies with market capitalisations that are a fifth or a tenth of that of blue-chip firms.
The slowdown is on account of lower offtake by agriculture and MSME segments as well as decline in micro credit
Mumbai: Bank lending to the priority sector grew at a mere 10% in October this year, on an annual basis, on account of lower offtake by agriculture and MSME (micro, small and medium enterprise) segments as well as decline in micro credit, reports PTI.
Credit offtake by the priority sector had grown by 19.9% during the same month of 2010.
Credit disbursement to the priority sector stood at Rs12.48 lakh crore in October compared to Rs11.35 lakh crore in the same month last year, according to the Reserve Bank of India (RBI).
In October, bank disbursements to agriculture and allied activities went up by a mere 7.1% to Rs4.35 lakh crore. In October 2010 credit disbursement to the segment had gone up by 20.4% on an annual basis.
Similarly, growth in offtake by the MSME sector slowed to 17.4% at Rs4.73 lakh crore in October. Bank credit disbursement to the sector had increased by 20% in October last year.
As far as micro credit is concerned, the sector, in fact, witnessed a decline of 13.3% during the month under review to Rs24,601 crore. Micro credit had grown by over 50% in the same month last year.
Credit to the housing sector in October this year stood at Rs2.36 lakh crore, up a meagre 3.5% on an annual basis. The growth in credit to housing had stood at 9.3% in October 2010.
Bank credit disbursement to weaker sections grew by 13.3% to Rs2.20 lakh crore during the month under review.
Credit offtake by weaker sections from banks had risen at an annual rate of 27.7% in October last year.
While some priority sectors like agriculture and loans for weaker sections is disbursed at an interest rate lower than their prime lending rates, other segments do not fall under the subsidised lending regime.