The Electricity Act does not allow preferential treatment to anybody as far as supply of electricity is concerned, according to KK Bajaj of the Consumer Education and Research Centre
The nine-month-old decision in Uttar Pradesh to provide round-the-clock electricity to the two places, Rae Bareli and Amethi, was revoked late Thursday 11 April 2013, after which power went off for more than four hours, Uttar Pradesh Power Corporation officials said, according to report in The Economic Times dated 12 April 2013. Amethi and Rae Bareli are represented in Parliament by Rahul Gandhi and Sonia Gandhi, respectively. The ET report added, “While officials were mum on the matter, some privy to the decision told reporters that from now on VIP districts would also get normal power supply.” Uninterrupted power supply, however, continues to some other VIP zones in Uttar Pradesh of the Samajwadi Party.
Although a partial victory, this is a clear verdict in favour of the humble consumer of electric power supply in all the states of India. The Electricity Act does not allow preferential treatment to anybody as far as supply of electricity is concerned, according to KK Bajaj, Chairman, Consumer Education and Research Centre (www.cercindia.org). UP Electricity Regulatory Commission (UPERC) had sent a notice to the state government asking its explanation for giving preferential treatment to consumers in Rae Bareli and Amethi.
Mr Bajaj says, “I will wait for a week and again write to UPERC.” All consumers in all parts of UP should be treated alike is his argument. There should be nothing special about consumers in VIP constituencies.
For FY13, the Mukesh Ambani-led company's net profit rose 4.8% to Rs21,003 crore while its turnover grew to Rs3.71 lakh crore
Reliance Industries (RIL), India's largest private sector company, reported a 32% increase in its fourth quarter net profit on improved refining margins. For the quarter to end-March, RIL's net profit rose to Rs5,589 crore from Rs4,236 crore while its total turnover declined marginally to Rs86,618 crore from Rs87,833 crore same period a year ago.
For the year to end-March, the Mukesh Ambani-led petrochemical company said its net profit increased 4.8% to Rs21,003 crore from Rs20,040 crore while turnover grew to Rs3.71 lakh crore from Rs3.39 lakh crore, a year ago.
Commenting on the results, Mr Ambani, chairman and managing director (CMD) of RIL said, “The growth in earnings was largely driven by strong and improved refining margins during the year. Production growth from our investments in unconventional liquids-rich resource plays in North America has reinforced our confidence in creating long-term value for our shareholders from this diversification. We are delighted to see our retail business achieving a milestone of annual revenue crossing Rs10,000 crore and will further strengthen our position in this sector.”
During FY13, RIL said its exports grew 15% to Rs2.39 lakh crore while gross refining margin (GRM) came at $9.2 per bbl. The company earned a cash profit of Rs30,505 crore during the year ended in March 2012, RIL said in a release.
For the full year, RIL's refining business revenues increased by 11.6%, Petrochemicals by 9.3% while Oil & Gas revenues decreased by 35.2% due to lower production. Higher prices accounted for 11.0% growth in revenues, which was partly offset by the decrease in volumes by 1.8%, the company said.
As on 31 March 2012, RIL had a cash and cash equivalent of Rs82,975 crore in bank deposits, mutual funds and government securities and bonds.
The company has declared a full year dividend of Rs9 per share.
Before the results announcement, RIL shares closed Tuesday 1.38% up at Rs804.5 on the BSE, while the benchmark Sensex ended 2.11% higher at 18744.9.
With weak growth and lower WPI inflation, Nomura believes that a cut is more likely than not, but it is not a done deal. Nomura expects the RBI to cut the repo rate by 25 bps on 3rd May followed by a long pause
The recent fall in commodity prices, including gold, has come as manna from heaven for the Indian economy. It should keep wholesale price index (WPI) inflation in check and help moderate oil and gold imports in the coming months. According to Nomura Financial Advisory and Securities (India) Pvt Ltd, a rate cut in May by the Reserve Bank of India (RBI) is more likely, but it may not be a done deal.
“We attach an 80% probability that the RBI will cut the repo rate by 25 basis points (bps) on 3rd May and a 20% chance that the RBI may leave rates unchanged, citing the 100 bps of rate cuts already delivered and prodding banks to first transmit the existing cuts to consumers,” Nomura said in a research note.
According to Nomura, India faces structural problems on food price inflation and supply constraints, which cannot be addressed by lowering interest rates. If commodity prices sustain their recent fall, then the trend in both headline and core WPI inflation should be lower, it says.
During March, India’s WPI inflation fell to 5.96% y-o-y from 6.84% in February, led by an across-the-board fall in inflation. Core inflation (WPI Mfg ex-food) moderated to 3.5% y-o-y from 3.8% in February and food (primary and manufactured) price inflation also eased to 8.2% from 10.2%.
“However, unless the vicious circle between rising minimum support prices, food prices and rural wages is corrected, we think CPI inflation will remain in the 9-10% range. Hence, in the current environment of high food prices and low commodity prices, the gap between WPI and CPI inflation will likely remain wide,” Nomura warned.