NTPC Ltd said it has signed a power purchase agreement (PPA) with Madhya Pradesh State Power Trading Company Ltd for sale of power from its upcoming power stations, Lara Super Thermal Power Project in Chhattisgarh and Barethi Super Thermal Power Project in the state.
Lara and Barethi Power Stations shall have an installed capacity of 4,000MW and 3,960MW, respectively. These projects are for the 12th plan and are expected to complete by 2017.
On Monday, NTPC rose 1.58% to Rs179.55 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.38% up at 19,400.27 points.
BIG CBS Networks Pvt Ltd, a joint venture between Reliance Broadcast Network Ltd and CBS Studios International, has launched its first premium English entertainment television channel, BIG CBS Prime. The channel goes on air from 29th November and will be beamed across the Indian sub-continent.
BIG CBS Prime will feature the US television shows from CBS Studios International. The channel will deliver 37 hours of original programming each week. BIG CBS Networks has signed strategic deals with Sony Pictures and NBC Universal for exclusive access to a library of hit Hollywood movies to beef up its weekend movie programming. The company is also in talks with other international studios to acquire a slate of hit Hollywood films.
Ensuring optimal reach at launch of its first channel, BIG CBS Networks has entered into strategic alliances with Reliance BIG TV, Digicable, Den Networks and Hathway. It has also inked distribution deals with InCable, Airtel DTH and 7Star taking total reach to 20 million households across India. The channel will also be available on AsiaSat3S.
On Monday, Reliance Broadcast Network gained 0.81% to Rs87 on the Bombay Stock Exchange, while the benchmark Sensex closed 1.38% up at 19,400.27 points.
In 2007, the former RBI governor was emphatic that regulation should not smother economic growth. But in 2010, why has the Bimal Jalan Committee on stock exchanges produced such a biased report?
Just three years back, Bimal Jalan, former RBI governor, emphasised the need for the 'important' distinction between regulation and control at a programme called 'Political Economy Constraints in Regulatory Regimes in Developing Countries.' (More here: http://www.cuts-ccier.org/pdf/reguletter1-07.pdf). Mr Jalan's point of view in March 2007 was that control should not overshadow regulation.
Cut to the present. Mr Jalan seems to have done a volte-face as far as his definition of 'regulation' is concerned. We have reported (http://moneylife.in/article/72/11598.html) and (http://suchetadalal.com/?id=1c66a580-fbb5-6614-4cef5a45bd81&base=sections&f) on how the Bimal Jalan Committee on stock exchanges (appointed February 2010 to deliberate on governance, ownership, listing of bourses and associated issues) has delivered a set of ridiculous recommendations. In fact, as we have pointed out, the report tabled by this panel is biased in favour of the National Stock Exchange (NSE), and will only help the bourse retain its monopoly position and eliminate any kind of competition from any other exchange in India.
As a Moneylife reader (identified as 'tetali') points out-"What is recommended by the committee headed by Mr Jalan is exactly the opposite (of the former RBI governor's view in 2007). Why this new wisdom?"
Indeed. Why this sudden change of stance from a respected economic bureaucrat? Mr Jalan has had an illustrious career so far-apart from heading the apex bank, he has been chief economic advisor, banking secretary, finance secretary, Planning Commission member-secretary... this is no ordinary curriculum vitae.
But let our readers do the talking. These are, of course, their views and not necessarily those of Moneylife, but the vox populi has spoken out-loud and clear.
Here's what 'Santdaveed' had to say on 27th November on our site: "Shareholding regulations were reviewed and amended only in 2008. What was the need for reviewing them again at this stage? Why were these drastic recommendations made? I think it was the same Bimal Jalan who recommended that VSNL (the erstwhile Videsh Sanchar Nigam Ltd) monopoly in ISP (Internet Service Provider) gateways should go. Why is he trying to protect monopolies now?"
For the purists, this was 'Santdaveed' has to add: "In an undated speech as recorded in the RBI Monthly Bulletin, 12 June 1998, Bimal Jalan had quoted Schumpeter as (follows):
'What is the process through which these technological innovations get transmitted to (a) higher growth trajectory? Let me turn to Schumpeter once more. Schumpeter describes this process as one of creative destruction; in his own words-the fundamental impulse that sets and keeps the capitalist engine in motion comes from the new goods, the new methods of production or transportation, the new markets, the new form of industrial organisation the capitalist enterprise creates. (These) illustrate the same process of industrial mutation that incessantly revolutionises the economic structure from within, incessantly, destroying the old one, incessantly creating a new one. This process of Creative Destruction is the essential fact about capitalism.'"
As our reader explains, "As can be understood from the above, creating and nurturing monopolies is the antithesis of the above philosophy. Monopolies resist any change, more so a disruptive change. One will wonder-has Mr Jalan ideologically converted into a Nehruvian and Fabian socialist?"
So is laissez-faire now officially dead in India?
Another observation, voiced by Moneylife reader Aniket Narayan, again on 27th November: "On one side, we say capital markets are to be deepened. On the other hand, we are restricting new investors with clauses as mentioned in the report which says there is a cap on the profit and no exit. In such a scenario, we are hampering the growth of the markets itself and these markets are barometers to economic growth. Thus, such ridiculous recommendations are bound to affect the economy in the long run." We needn't add more.
Maybe these lines from Mr Jalan's website (http://www.bimaljalan.com/speechesframe.html) disclose why he has chosen to oversee the kind of report that has been tabled: "[It] will be a grave mistake to misconstrue the need for economic reforms with a call for less role for Government (our emphasis) or public policy in widening opportunities and creating a positive environment for equitable development."
In other words, we were much better off with the rate of growth in our mixed economy-with Big Government playing a role in each and every part of our lives-if you go by the opinions of our former bureaucrats.
In this nation, the more things change, the more they remain the same.