There has been a spike in crude, but oil-marketing companies were reluctant to raise prices in the run-up to elections. ET Prime brings you the inside story of what happened thereafter.
If the definition of ‘public-sector unit’ is changed, it would be easier for the government to reduce stake in them and still remain in charge. Disinvestment then will remain a fund-raising exercise and ceding management control in most PSUs will almost be off the table.
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India’s goal of becoming a global leader in solar power is in jeopardy as a tariff cap on bids is forcing developers to abandon projects. Several small players have already shut down, but the government continues to be in denial.
The government claims that the Pradhan Mantri Ujjwala Yojana is a success. But the ground reality is different. Most households don’t refill their LPG cylinders owing to high costs, and instead switch back to cow-dung cakes and firewood for cooking.
Modi’s plans to cut crude imports unravel as domestic production slides. India will need new oil discoveries.
A bounce in oil imports will be inflationary, given that crude prices continue to move north. More spending on crude would also put enormous pressure on the fisc.
But are the country’s next-generation power lines a clean-power play or a global power move?
No price hike even as crude surges: how oil-marketing companies take a body blow when India goes to the polls
Even though crude-oil prices are climbing, oil-marketing companies have been asked to not increase retail prices, as it would hurt popular sentiment before the general elections. Such meddling with market-linked prices of fuels, such as petrol and diesel, has serious repercussions.
Already under severe pressure following historically low tariffs, solar-power developers are unwilling to set up projects even after placing bids. While financial viability is a matter of concern, recent consolidation reflects the turbulence in the sector.
Solar energy has immense potential in sun-baked India, but the country needs to fix the pain points: low tariffs and utilisation of government-allocated funds, high safeguard and import duties, and overdependence on southern and western states for power generation. Meanwhile, China is blazing a trail.
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