No easy fix for Telenor’s India joint-venture spat 17 Oct 2011 Uninor, a joint venture between Telenor and Unitech, needs cash. Telenor wants to raise $1.8 billion of equity but its partner has resisted, instead taking the case to court. Whether Unitech wins or not, it’s hard to see how Uninor can avoid having to bring down its heavy debts.
India telecoms policy mixed bag for operators 10 Oct 2011 The scandal-ridden sector is crying out for consolidation. Delhi’s new policy will allow spectrum trading and, theoretically, free up M&A too. But costs will rise and takeovers are unlikely until the corruption investigations are complete.
Essar’s better prepared for a second UK IPO 6 Oct 2011 India’s Essar is considering a UK listing for its infrastructure assets. With one London IPO under its belt, and lessons on governance from that experience still fresh, it should be better prepared this time around. Now there’s the small issue of timing.
Ambani’s challenges don’t end with 2G saga 4 Oct 2011 Anil Ambani will be relieved that investigators haven’t uncovered any evidence implicating him in one aspect of the 2G telecoms scandal. But he shouldn’t be complacent. His telecoms firm is struggling to keep pace with its rivals. It would be better if it was taken over.
India should step up privatisation 29 Sep 2011 New Delhi’s surprise rise in its borrowing target provides the perfect excuse to push harder on selling stakes in state companies. Market conditions aren’t great but, given the benefits to the economy of less state ownership, India should sell at almost any price.
Tata’s Jaguar Land Rover journey needs direction 29 Sep 2011 Tata Motors is in no rush to replace its CEO, who stepped down on Sept. 9. It is not the only gap at India’s largest auto maker. Shares in the firm, which also owns Jaguar and Land Rover, trade at a big discount to peers. A new CEO might find value with more business integration.
Bring back Manmohan Singh 22 Sep 2011 Anna Hazare’s anti-corruption campaign should be a wake-up call to Prime Minister Singh who has lost touch with India’s growing middle classes. One way to reconnect is to revive the vigour for economic reform which characterised Singh’s tenure as finance minister in the 1990s.
India’s botched crackdown may be turning point 17 Aug 2011 Arresting an anti-corruption hunger striker has cost the Singh government political capital. That could jeopardise reforms hanging in the balance, and may worsen supply bottlenecks and inflation. But it could also be a spur to tougher action on graft - another big economic drag.
India needs solution to $1.5 trillion puzzle 24 Jan 2011 That’s what it will need to invest in infrastructure over the next decade if it is to reach 10 percent GDP growth. The government and banks won’t be able to carry that load on their own. Financial liberalisation could help fill the gap.
India is behind curve on inflation 10 Jan 2011 It’s not just that the latest food inflation figures have reached 18 pct; the current account deficit is also high. The authorities need to get a grip, even if it means sacrificing 9 pct growth. Structural reforms, not loose policy, are the only sure way to sustain rapid growth.