In a hurry to meet the deadlines, the Indian government, the power companies and the leading banks are thinking to accomplish the herculean task of finding a quick and a permanent solution to the stalled power projects and tones of loans stake .The banks take the nasty blow if the projects financed by them fail to generate the cash flow after the announcement of the date of completion basically due to the delays in the land acquisitions and the environmental clearances.
The RBI had given at least during this period the banks will not take any loss on these loans , and this grace period is about to end with in coming one year. The various other factors to be taken into the consideration are financing the extra costs of over runs and over heads, want of extra flexibility in financing the existing projects and refinancing the various projects which are stranded at one or the other stages of completions and last but not the least the fuel crisis due to the cancellation of the coal blocks by the supreme court of India.
So these are some of the very crucial points to ponder upon to bring the economy back on track and do some contingency planning.
Bezos and Biyani sniff an Amazon Future ahead
Finally the east meets the west!!!!. The world’s largest online store Amazon alliances with the India’s largest listed brick and mortar retailer – The future group. This could be the turning point as they have decided to jointly sell goods between online and offline retailer in the country to counter the heavy discounting battle .Future group will promote its own labels of 45 apparels and other categories of food and beverages and range of electronics goods while the Amazon will take care of handling the logistics and customer services for merchandise on its portal. Another pleasant development is that both companies will jointly develop an exclusive brand new line of products across various categories.
This is a new breed of business where various opportunities will be explored like synergy of data, co working, mutual promotions and sharing the logistics too. This had to happen as the Future group was rattling from one scheme to another and Flipcart too had on the Billion Day Sale on October 6 fell head over heals !!!!
Advantage – Crude Oil
The crude oil is on its four year low will have multi dimensional positive effects in our country as our country heavily depends upon imports for almost 75% of its required consumption. It will give a fillip to pivotal macroeconomic indications not only such as CAD and fiscal deficits but also help in giving a shot in the arm to the consumer companies , the tyre industry but also give the booster to the energy sector. The cooling of the crude oil prices will also help the public sector units like HPCL, IOC and BPCL directly as the cheaper prices of crude will help reduce their working capital requirement and also put fewer burdens on the Government of India as it has to shell out subsidies.