• HOME
  • ABOUT US
  • SUBSCRIBE
  • ADVERTISE
  • FEEDBACK
  • E-NEWSLETTER
  • CONTACT US
91-22-24193000
Subscriber@ASAPPinfoGlobal.com
Infrastructre Today
Advertise Here [728px W x 90px H pixels]
  • BEST STORIES
  • INTERVIEWS
  • SPECIAL
  • POLICY UPDATES
  • EVENTS
  • FINDEX
  • ARCHIVES
  • Covid-19 Updates
Infrastructure Today Magazine | Stocks & Barrels

Stocks & Barrels

Editor's Page  /  Dec 01, 2014

It´s raining good news for the Indian economy. Credit Suisse has said that India will witness the fastest dollar nominal growth in 2015. And falling oil prices are proving to be a major windfall for the country. Knock-off effects from the fall are helping the Centre cut subsidies, pare inflation and handle the fiscal deficit. This would also be an opportune time for the RBI to cut interest rates, but more on that later.

The fall in oil prices is proving to be an interesting saga. That´s because geopolitics comes into play, and now it looks like a number of (seemingly unrelated) factors are combining to hammer down prices. OPEC has failed to slash production to prop up oil, because Saudi Arabia does not want arch-rival Iran to gain from any increase in prices, among other reasons. And of course, the US has a strong stick to beat Russia with, due to the shale weapon that it wields, as fracking fuels the American shale boom.

This would be an excellent opportunity for India to build up its strategic oil reserves. I am surprised that there has been hardly any mention on this front. Currently, the country has strategic reserves of 31 million tonnes of crude. That´s just not enough. India has an insatiable appetite for oil and it displaced Japan last year to become the third-largest crude importer. Now´s the time for us to fill up our tanks. Just for comparison, the US, despite having become a major oil producer, still has strategic reserves of around 717 million barrels.

On the coal block auction issue, I would like to congratulate the government for having moved speedily on the issue after the Supreme Court diktat. A few issues still remain... I will elaborate on them in a few articles that we are planning on this complex subject in the future.

Coming back to the buoyant economy and the ebullient stock market, now is the time for the government to offload its stakes in selected PSUs and gain from the high market valuations. On the block are (stakes in) ONGC, Coal India, Power Finance Corporation and Rural Electrification Corporation, among other public sector majors. The government should not miss the bus, as was the case with the previous dispensation. The PM has the mandate to deliver, and I am sure he will.

Since inflation seems to be firmly under control, now is the time for the RBI to seize the opportunity and cut interest rates. Though expectations are that the apex bank might get around to doing so only in February next year, I feel that with the economy on a firm uptick, it´s time to act.

Coming back to the current issue, the who´s who of the infrastructure industry have spoken to us on their outlook for next year. I am happy that their mood is gung-ho, and this would surely translate into some concrete action on the ground for all involved stakeholders.

Tags Cloud
  • Indian Economy
  • RBI
  • OPEC
  • Saudi Arabia
  • Fracking Fuels
  • Crude
  • Supreme Court
  • PSU
  • ONGC
  • Coal India
  • Power Finance Corporation
  • Rural Electrification Corporation
  • Infrastructure
  • Concrete
Advertise Here [468 W x 60 H pixels]
YOU MIGHT ALSO LIKE

Comments (0)

Leave a comment

Name *
E-mail *
Message *
Verification Code *
  Change Image

Loading ...
Subscribe to our Magazine | Newsletter
Social
Become a fan
Like
Follow us
Follow
RSS
Subscribers
Most commented
1Our contribution to IRE has doubled in 2 years
1'Lenders' concern - risky execution in highway concessions
1About 1.3 per cent of land in India gets converted into wasteland every year
Latest Comments
1
Three Lines Shipping says:
Agree. Developing a domestic transshipment port is a good idea if we talk about seaports, there are several countries and commercial centers around the world that don’t have a seaport and these countries have to use the seaports of other countries in order to import or export their cargo, which will give a competitive advantage.
2
kishore tamidela says:
Adhering to international best business practices with niche boutique firms could open doors to easily tap financing from institutional investors both debt and equity.
Advertise Here [300px W x 600px H pixels]

Posts Categories

  • BEST STORIES
  • INTERVIEWS
  • SPECIAL
  • POLICY UPDATES
  • SECTORS
  • EVENTS
  • FINDEX
  • ARCHIVES

Twitter Feeds

Tweets by @InfraToday

Contact Us

ASAPP Info Global Services Pvt Ltd.

A-303, Navbharat Estates,
Zakaria Bunder Road,
Sewri (West),
Mumbai - 400 015,
Maharashtra, India


Tel : 91-22-24193000, Fax : 91-22-24175734
Email : Subscriber@ASAPPinfoGlobal.com
Website: www.ASAPPInfoGlobal.com
  • HOME
  • ABOUT US
  • SUBSCRIBE
  • ADVERTISE
  • FEEDBACK
  • E-NEWSLETTER
  • PARTNERS
  • PRESS
  • CONTACT US

© COPYRIGHT 2019 ASAPP Info Global Services Pvt Ltd. All Right Reserved.

Infrastructure Today

India's Premier Magazine for Nation Builders