Part of REL stake being sold to foreign company ...
One fine day, he may just reduce REL to a loss-making distcom .. and hive off all other profitable parts of the business .. and then collect MORE tariff quoting losses ....
Its a WIN-LOSE situation .. Ambani wins .. and all consumers lose ... just wait and watch ..
The article appears here:
http://www.businessworld.in/content/view/2561/2639/
and goes like this ...
"Anil Ambani is back to doing what he is best at — deals. The Anil Dhirubhai Ambani Group (ADAG) chairman is planning to sell a 5 percent stake in his power generating company — Reliance Energy (REL) —to a foreign but hitherto unnamed partner.
Officials close to the negotiations between REL and its future partner say that the deal is nearing closure. The shares may be sold at Rs 1,100 a share, Rs 93 higher than the conversion price of foreign currency convertible bonds (FCCBs) issued in 2004 and Rs 154 higher than the closing price on BSE on 19 September.
Offloading 5 per cent will fetch REL a cool Rs 1,254 crore."
Showing posts with label Share prices. Show all posts
Showing posts with label Share prices. Show all posts
Saturday, November 10, 2007
Govt keeps private sector out - Really ?
There was a news item that appeared saying this ...
"The Government said private sector cannot participate in nuclear power generation under the existing Atomic Energy Act but a review is required in view of changing situation.
"Atomic Energy Act, 1962 allows nuclear power generation only by a Central Government company," Prithviraj Chavan, Minister of State in the PMO, told Lok Sabha during Question Hour.
As far as manufacturing of equipment and components is concerned, he said no policy change is required.
In fact, the Government has encouraged and worked with both public and private companies in this regard, the Minister said.
It was only in nuclear power generation that no decision has been taken with regard to private sector's participation, he said.
The existing Act was last repealed in 1962 and since then various developments have taken place in the area, the Minister said.
The review of the Act is under consideration for the past 10 years, he said. An expert committee was set up in 1997 under the chairmanship of scientist Raja Ramana who gave a report in 1998, he said.
Asked about recommendations of the Committee, Chavan said these related to national security and strengthening of the regulatory mechanism in the atomic energy."
Now, if this is the case then what about reports that companies like Reliance Energy, Tata Power, etc. were very keen on setting up Nuclear power projects .. there was a lot of media hype when the US delegation visited India ...
Really ?? .. or were those news items released only to pump up the share prices of those companies .. REL share has almost doubled since June 2007 ....
"The Government said private sector cannot participate in nuclear power generation under the existing Atomic Energy Act but a review is required in view of changing situation.
"Atomic Energy Act, 1962 allows nuclear power generation only by a Central Government company," Prithviraj Chavan, Minister of State in the PMO, told Lok Sabha during Question Hour.
As far as manufacturing of equipment and components is concerned, he said no policy change is required.
In fact, the Government has encouraged and worked with both public and private companies in this regard, the Minister said.
It was only in nuclear power generation that no decision has been taken with regard to private sector's participation, he said.
The existing Act was last repealed in 1962 and since then various developments have taken place in the area, the Minister said.
The review of the Act is under consideration for the past 10 years, he said. An expert committee was set up in 1997 under the chairmanship of scientist Raja Ramana who gave a report in 1998, he said.
Asked about recommendations of the Committee, Chavan said these related to national security and strengthening of the regulatory mechanism in the atomic energy."
Now, if this is the case then what about reports that companies like Reliance Energy, Tata Power, etc. were very keen on setting up Nuclear power projects .. there was a lot of media hype when the US delegation visited India ...
Really ?? .. or were those news items released only to pump up the share prices of those companies .. REL share has almost doubled since June 2007 ....
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