ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Ashok BanerjeeSubscribe to Ashok Banerjee

The LIC–IDBI Deal

In the context of the recent deal between the Life Insurance Corporation of India and Industrial Development Bank of India, is this proposed investment prudent from its impact onLIC’s balance sheet and income prospects as well as from an average premium payers’ standpoint? A possible alternative in whichIDBI’s retail assets could have been sold to a commercial bank and the remaining project finance portfolio turned into a wholesale and long-term finance bank is discussed.

Availability Based Tariff

The basic objective of power sector reform in India has been twofold: provide electricity at an affordable price, and improve the quality of supply. Availability-based tariff (ABT), as an economic instrument, has successfully addressed both the issues: rationalise the tariff structure and ensure quality supply at the grid-level by defining a playing rule for both the generators and the beneficiary states. ABT has also been successful in devising an incentive system to arrest grid indiscipline.
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