Tariffs may go down, as CERC implements new transmission norms
Power regulator CERC has unveiled new norms for inter-state transmission of power, which would result in lowering of tariffs in the long term.

Transmission pricing mechanism based on Point of Connection (PoC) would facilitate integration of electricity markets and enhance open access and competition by obviating the need for pancaking of transmission charges. This is the first such attempt by CERC to build in adequate price signals for the network operators to identify the transmission bottlenecks and remove them. This may imply non uniform transmission pricing like the proposed nodal pricing and there may be a need to factor aspects like line congestion, peak load pricing etc.

India may miss power capacity addition target
India may yet again miss power capacity addition target as the country is likely to add around 55,000 MW of generation capacity against the targeted 62,000 MW in the 11th Five-Year Plan (2007-12).

Slow progress in capacity addition in generation can be attributed to (a) slow implementation of the projects. Be it PPPs or EPC contracts most of the state governments’ have a record of cost and time overruns (b) apathy of the private sector investment; private sector investment has proved elusive mainly because (i) near-bankrupt SEBs are not seen as creditworthy buyers; and (ii) producers cannot sell to anyone other than the SEBs. Though the Electricity Act 2003 has introduced open access that would allow producers to sell directly to bulk consumers, the State Regulators have failed to enable even a single consumer to avail of open access in any part of India. In this scenario, it may take a few years before open access becomes reality and until then, the prospects of private investment would continue to be bleak.

Govt decides to hike petrol, diesel prices
Centre has decided to hike fuel prices as part of a move towards market-driven price regime. Petrol prices will go up by Rs 3.73 per litre, diesel by Rs 2 and LPG by Rs 35 per cylinder.

Inflation concerns prevented the government to align petroleum prices to the market prices. However, soon the government should do this for diesel as well. This current move, of the government to align petroleum price to the market will help the oil marketing companies and reduce their deficits. However, rationalization of taxes will have to be the next step as no longer can this sector be charged such distortionary taxes.

Miners to be asked to give 26% profit to local area: Handique
The proposal would be part of the new mines legislation, the draft for which would be sent to the Cabinet later in the month of June 2010.

Mineral rich states like Orissa, Jharkhand and Chhattisgarh need to spend a lot more on their tribal communities. One way to ensure this is to give the local bodies a slice of mineral royalty. This may help to address the Maoist problem as the local communities can be true stakeholders of the local wealth.

Delay in notifying M&A norms irks CCI
It is more than a year since the CCI became operational, but the norms that would give it the powers to vet high-voltage mergers are still to be notified.

More than a year and not yet a single order that will have substantial contribution. Soft targets like multiplexes?? Will have to wait and watch. Section 3 and Section 4 of the Competition law have been in force for over a year, what about being active in implementing those?

GoM finalises Rs1500cr package for Bhopal gas victims
A Rs 1,500 crore package for enhancing compensation for the kin of those who died and those debilitated in the Bhopal gas disaster was finalised by a Group of Ministers (GoMs).

Political responsibility will never, however be fixed. GoMs are a mechanism to pull wool over people’s eyes. It’s high time that our political establishment is made accountable, monetary compensation is just one part of this.

Broad consensus on apex higher education regulator: Sibal
Broad consensus has been reached on a draft bill aimed at creating an apex regulator for higher education in the country.

Another super regulator! What happens to UGC? Higher Education is in crisis, good regulation is the key. However, the proposed bill is not adequate in its scope.

Government plans 'monitoring system' on food subsidy
The government is considering setting up a 'monitoring system' to ensure effective utilisation of the food subsidy given to the states under the targeted public distribution system (TPDS).

The TPDS has failed. Identifying poor and counting the poor has been a very difficult exercise. Thus, till the food subsidy programmes become self selecting and decentralized monitoring the poor is not going to help much.

Govt appoints panel to help achieve targets
The government has selected a panel of 20 professionals who could be asked by various ministries to help achieve their annual targets

Govt tweaks legislation to end regulatory tussle
An ordinance passed hands over control of Ulips to Irda; the RBI Act also modified to avoid spats

Road contracts to be delivery based
To accelerate national highway (NH) projects, the government is mulling a shift to a new delivery-based criterion for awarding contracts from the current lowest-bidder norm.

'Maoist menace axes India coal output'
Maoists' destructive capabilities extend wider than of mere terror and includes some very vital to the economy sectors.

India projects up to 30% funding gap in infra investment
India requires $1 trillion in the next five years to create infrastructure -- key to 9% plus growth -- but expects a funding gap of up to 30% that it wants bridged by American investors.

Govt rings up Rs1 trillion from 3G and broadband
The government rang a triumphant end to the auctions for high-speed, third-generation (3G) mobile and broadband licences, raising in excess of Rs1 trillion, more than three times the budgeted estimate.

Probe into irregularities could slow road projects
Award of highway projects could be delayed because of an investigation against some senior officers of the National Highways Authority of India (NHAI) for alleged irregularities.

Ministries handed reins of small PSUs
The government has given absolute authority to administrative ministries to deal with the smaller loss-making public sector companies, allowing them to wind up such units or sell them through strategic sale.

Cess on farm power mooted to boost water table
The Planning Commission has advised the Haryana government to impose a cess on electricity used for cultivation and use the funds to replenish depleting ground water.

Govt proposes windfall tax on miners
On the heels of Australia announcing 40% tax on bumper profits of miners, India said it proposes a similar windfall tax on iron ore.

Tribunals for economic disputes, offences likely
The government plans to set up special dispute resolutions panels and courts to resolve economic offences and disputes, as it looks to make a clear distinction between cases of general and specialised nature.

Fertiliser subsidy leakage may add over 10% to bill
Fertiliser subsidy leakage may likely total to a shocking 10 percent plus of the country's massive subsidy bill this year.