Active TopicsActive Topics  Display List of Forum MembersMemberlist  CalendarCalendar  Search The ForumSearch  HelpHelp
  RegisterRegister  LoginLogin

Stock Synopsis
 The Equity Desk Forum :Investment Ideas - Creating winning portfolios! :Stock Synopsis
Message Icon Topic: Rural Electrification Corporation (REC) Post Reply Post New Topic
<< Prev Page  of 3
Author Message
Kautilya
Senior Member
Senior Member
Avatar

Joined: 08/Feb/2010
Location: India
Online Status: Offline
Posts: 459
Quote Kautilya Replybullet Posted: 21/Dec/2011 at 1:18pm

As per a research report, the mess created by SEBs could take a long time to resolve. The planning commission has apparently released a report on the financial position of SEBs and has proposed several reforms in order to improve the health of SEBs such as setting up of SPVs that will purchase loans from banks. These SPVs are expected to be funded by a credit line from RBI (there could be preconditions such as regular tariff hikes, reduce distribution losses etc.,)

Some interesting points I thought worth of sharing
1. Accumulated losses of SEBs from FY06-FY10 is about Rs1790 bn
2. Over 70% of these are financed by PSU banks :(
3. Government bodies have a deplorable record in paying electricity bills
4. Financial records are in poor state and there are delays in supply of audited financials which impacts tariff setting
4. SERC functioning has been inadequate
 
Hope this helps people who are tracking this sector (utilities and capital goods in general)
My indecision is final.
IP IP Logged
TCSer
Senior Member
Senior Member


Joined: 17/Mar/2008
Location: India
Online Status: Offline
Posts: 1882
Quote TCSer Replybullet Posted: 22/Dec/2011 at 11:56pm
But the monopoly these SEBs have over distribution will come to their rescue as customers hv no option but to go with them,With large no of SEBs like TN,Delhi,Rajasthan hv already increased the price n after elections UP too may do the same .Except for WB & ultra left Mamta other states shud be ok.But yes rishvatkhor JE<AR<EE emaiiinsa big problem.
Share market is nothing but a game of temperament. Success mantra Right Price,Right Business,Patience, Conviction .Do not do panic buying or selling.It may be the only profession where inactivity pays
IP IP Logged
excel_monkey
Senior Member
Senior Member
Avatar

Joined: 17/Nov/2009
Online Status: Offline
Posts: 1281
Quote excel_monkey Replybullet Posted: 22/Dec/2011 at 12:13pm
By the time SEBs come out of their issues (if they ever) we would be bankrupt 5 times
Originally posted by TCSer

But the monopoly these SEBs have over distribution will come to their rescue as customers hv no option but to go with them,With large no of SEBs like TN,Delhi,Rajasthan hv already increased the price n after elections UP too may do the same .Except for WB & ultra left Mamta other states shud be ok.But yes rishvatkhor JE<AR<EE emaiiinsa big problem.
I have a vested interest in the stocks I discuss, therefore I would request you to kindly consider my comments with a pinch of salt and do your own due diligence
IP IP Logged
wiseowl
Senior Member
Senior Member
Avatar

Joined: 04/Mar/2009
Online Status: Offline
Posts: 295
Quote wiseowl Replybullet Posted: 22/Dec/2011 at 10:53am
Originally posted by TCSer

But the monopoly these SEBs have over distribution will come to their rescue as customers hv no option but to go with them


This has been the situation all the while ; the SEBs are in a mess inspite of this. The solution is not raising the tariff but proper management by reducing the T&D losses.
You alone are responsible for your actions.
IP IP Logged
Kautilya
Senior Member
Senior Member
Avatar

Joined: 08/Feb/2010
Location: India
Online Status: Offline
Posts: 459
Quote Kautilya Replybullet Posted: 22/Dec/2011 at 11:03am
In the meanwhile the current state of affairs of the SEBs will continue atleast till the next general election (The last thing the govt would do is raise tariffs and franchise the Transmission and Distrubution business before an election). So anybody investing in these sectors should be wary of this.
My indecision is final.
IP IP Logged
<< Prev Page  of 3
Post Reply Post New Topic
Printable version Printable version

Forum Jump 		You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum



This page was generated in 0.156 seconds.
 Bookmark this Page

Partner Site India Forums : Indian Television, Bollywood, Bollywood movies, Discuss TV Shows India, Indian Television Serials Forum, Star Plus, Set India, Zee TV with Daily Update
Powered by