Friends,
The KG Basin Gas supply related dispute is getting murkier by the day. I have not been paying attention to the developments in this case due to the fact that this ivolves more by way of fight based on political clout the warring parties. They have (or least one of them at any particular time to get statutory provisions bent or even amended). This thing gets proved as now the govt at a belated stage submitted before the supreme court that the ageement between brothers be nullified as the ownership right of the gas are with the govt and any agreement in contravention of the rules is void.
The question is that why was the govt not taking this stand earlier and why this belated wisdom got dawned on the govt functioneries at this particular stage. There has never been any development since the battle started which has been responsible for the status that they now claim. Either it was there all through or it is not yet there. I am again ignoring the pointwise study and would like to look at what is pronounced by SC in its judgement. I may however say that this dispute has made the Nifty poorer by at leasr 200 points. After the clouds are clear the Nifty would not lose time recovering by 200 points.
The govt in Nehru’s times was very concerned about the need of curbing the size of any single group from getting too large so as to wield a sort of authority which may even cloud the govt’s own power. There was Monopolistic and Restrictive Trade Practices Act which covered the matter of overall control of any individual group in any particular line of activity.
This in fact will remain a concern in capitalistic and free trade regime everywhere and anywhere.
The Asian markets are quite strong even this morning and therefore the Nifty opening may be strong too, rest can be known only when the days trading closes.
I am , for my own reasons, all for govt retaining 51pc stake in any big govt enterprise that is in existance. The managing part of it may always be left by govt in professional hands. The privatisation is no answer to any ill, if the enterprize is not economically viable, it may always be wound up. Why invite vultures by declaring it dead sick. This makes for bad atmosphere overall. As for the dis-investment, I would like govt to very simply keep diluting stake over time through the trading plateform on the exchanges. Only thing is that the govt should have its own reserve price (not made public) below which it should not sell.
Have you predicted the Nifty closing level for 20th July (see relevent post)?
HariOm,
krnsaKhandelwal
