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

Articles By S L Rao

Dabhol, Godbole Report and the Future

In the present state of the power sector in India, Dabhol power at its present tariffs is likely to be unacceptable to the extent of its capacity. The speediest way out of this imbroglio may well be to treat DPC as a stranded project and negotiate the lowest cost to move the foreign investors out of the project. This may mean that governments might have to take a knock because of stranded costs, to the extent that the price payable might be more than what an Indian investor might be willing to pay. Tariffs can then be based on those lower capital costs and without the dollar denominations

Indian Companies in an Open Economy

The deed is done and the clock cannot be put back. Competition has come into almost all sectors of Indian industry and will increase. It is making the economy more efficient in using resources. A new breed of entrepreneurs and new industries are emerging who are able to operate successfully in this changed environment. This process must accelerate. It is in the interest of the country's growth and competitiveness that the old companies which do not wish to change and reform themselves become extinct.