Category: Your Money

JSW Steel to raise output at Karnataka plant

India’s No.3 steelmaker JSW Steel said on Monday it plans to raise production at its plant in Karnataka state after the Supreme Court partially lifted an iron ore mining ban imposed in a key region of the state.

The Mumbai-based steelmaker has a capacity of 11 million tonnes per annum (MTPA), with plants in Karnataka and Tamil Nadu state, and requires 18 MTPA of iron ore to operate them at full capacity, it said.

On Friday, Supreme Court allowed state-run miner NMDC to mine up to 1 million tonnes per month of the steel-making ingredient from 6 August in Bellary.

JSW Steel to raise output at Karnataka plant – Corporate News –

Patient threatened by rating agency medicine

The problem with rating agency and IMF calls for governments to tighten fiscal policy is that monetary policy cannot offset it under current circumstances. We have reached the zero lower bound for interest rates in Japan, the US and UK while quantitative easing in its current form has disappointed.
I would feel relaxed about fiscal tightening if interest rates were 10 per cent or more and central banks could cut them as inflation dropped. But I am not convinced monetary policy can take up the strain if we are seeing fiscal retrenchment at the same time. An expansion of both fiscal and monetary policy offers the best hope for the future.


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Godrej goes global its own way

If a Western firm did this, it might be clobbered by fund managers for being too thinly spread.
Indian investors have been more open-minded: Godrej Consumer’s shares have more than tripled since the end of 2007, valuing the firm at $3.2 billion. Mr Godrej says the key is to pick niche products with sizeable local market shares which pass under the radar of big global rivals.
Aware of its limited pool of managers and knowledge of new countries, Godrej grants the acquired firms autonomy.


Sesa Goa to buy 51% stake in Western Cluster

Sesa Goa, a subsidiary of Vedanta Resources, on Saturday said it will buy 51% stake in an iron ore making firm in Liberia for $90 million in an all-cash deal.
“We are highly delighted with this opportunity to consolidate our iron ore business.
Elenilto has more than 100 exploration and mining licences with over 10,000 sq km area in Africa and Europe.

Sesa Goa to buy 51% stake in Western Cluster for $90 mn –

The unreformed parts of the economy are becoming a drag on growth

Taj Mahal, Agra, India.

Image via Wikipedia

In June a deputy governor of the central bank predicted that the country’s economy would grow at a double-digit rate during the next 20-30 years. But in the past six months the private sector, which is supposed to do the heavy lifting that turns India from the world’s tenth-largest economy (measured at market exchange rates) into its third-largest by around 2030, has become fed up.
What happens in India is not because of the government but in spite of the government,” says the head of a pharmaceutical company. Corruption has “paralysed the government,” reckons the chief executive of one of India’s most prestigious firms.
The economy may still be slowing naturally, as the low interest rates and public spending that got India through the global crisis are belatedly withdrawn. To raise the economy’s growth potential, India could do with another dose of reform, aimed at markets for inputs, from electricity to labour and land, that are still choked. Foreign direct investment into India has been subdued for a year (though it did pick up in May). For India to grow at 8-10% a year, supply must at least double in a decade.
The central bank, which has raised interest rates ten times since the start of 2010, insists that the costs of getting richer-such as diets with more protein-are partly to blame. But India looks like an economy operating at full capacity.
A recent improvement in the current-account deficit, thanks to surging exports, suggests that India could be less reliant on foreign funds than in the past. Fundamentally the reason why bad debts haven’t built up is because the economy is doing so well,” says the boss of one lender.
Compared with a fragile world economy, an India on autopilot could chug along quite happily, growing faster than most other countries.


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