The inflation rate in the Indian Economy has come down to 0.48 percent after rising for three consecutive weeks. The Wholesale Price Index (or WPI) slowed down to 0.48 percent, mainly because of fuel prices. Though international crude oil prices have increased in the last one month, it is still less than year-ago prices leading to nearly 0.8 percentage point decline in fuel index that accounts for 15 percent of the WPI. The inflation rate as measured by the WPI stood at 0.7 per cent for the previous week ended 25 April and it was 8.73 percent for the corresponding week in 2008. Continue reading Indian Economy: Inflation Rate Down to 0.48 percent
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Indian Power Sector Poised For Strong YoY Growth
We all understand that increased power generation is critical to the infrastructure and development of India. As you may know, India has one of the lowest per capita electricity consumption in the world. Despite generation capacity growing 100 times since 1947, the supply has continuously trailed behind demand, with an average gap of 9%. Continue reading Indian Power Sector Poised For Strong YoY Growth
Sajjan Jindal Interview on JSW Energy: Merchant power tariff will come down in 3-4 years
JSW Energy’s IPO is coming up on 7 Dec 2009. The above video shares some key thoughts from Sajjan Jindal, VC and MD of JSW Steel, who believes that in 3-4 years, merchant tariff rates will converge with PPA rates from independent power plants, including his own.
JSW Energy is also keen to have super critical thermal power plants and also nuclear power plants if possible in future.
Point to note: Sajjan Jindal has a track record in creating wealth from technology investments. We will be happy to see his involvement in decisions related to power plant choices.
For investment returns from JSW Energy, he feels a 20-25% ROE (return on equity) will make him and his investors happy. We agree.