SUBSIDY RISE SHORT-CIRCUITS REFORMS ON POWER FRONT

Article Abstract:

The reform process in the power sector is likely to be affected by hike in subsidy to agriculture and domestic consumers. The State Electricity Boards (SEBs) provide subsidies to the agricultural and domestic sector as directed by the state governments. Such subsidies are expected to increase to Rs27,804.5 crore by the end of 1998-99. The rate of returns to the SEBs has been declining steadily and is now a negative 21.2 percent as against a negative 19.4 percent in 1997-98. SEBs have incurred commercial losses of Rs13,807.9 crore in 1998-99. The poor financial state of SEBs is the major reason for the failure of private power projects to take off. Private investors are unsure of returns from such projects as they have to sell their power to SEBs. (uh)(vr)

Comment:

The reform process in the power sector is likely to be affected by hike in subsidy to agriculture and domestic consumers.

Publisher: Bennett, Coleman & Co. Ltd.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
United States, Electric Utilities, Electric Power Generation, Transmission and Distribution, Electric services, Other General Government Support, Government Enterprises-State, Public enterprises

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INDIA BRAND EQUITY FUND LAUNCHED

Article Abstract:

The India Brand Equity Fund was launched February 18, 1999 with a corpus of Rs102 crore. The objective of the fund is to promote the label - Made in India - as a symbol of quality and to project the country as a reliable supplier of quality goods and services. The first two beneficiaries of the fund would be the public sector HMT Ltd of Bangalore and KG Denim of Coimbatore. (khr)

Publisher: Bennett, Coleman & Co. Ltd.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
India, Legislative Bodies, Government Affairs

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