Archive for the 'Tata’s small car project' Category

Tata Nano from Gujarat with pleasure (Sanand)

October 7, 2008

Friends,

Just now, in a press conference, Mr Ratan Tata and CM Narendra Modi have announced that 1100 acres of land has already been handed over to Tatas. The new plant will come up now in Gujarat near Ahmedabad at Sanand. Mr Tata has endorsed the the site is just perfect and the atmosphere is very congenial. The time line will be maintained. So, in the end, the clamouring for the project by other states is over.

There is no question about it, the state of Gujarat would be the engine of growth for the country and will a model state, in governance and friendly relations between the industry and labour. Here attitude is very constructive and pervades the govt machinery too.

Mr Tata has also said that the terms are slightly better than they previously had in WB. Not only this the land is being bought by Tatas at market price. The road network is already in place around the site.

Let us all celebrate the festive times with a satisfying feeling in mind of all countrymen that the dream car, the revolutionary car, that has changed the way the cars will be built in future, is finally going to take shape beautifully and fast.

HariOm,
Krsna Khandelwal

BIRDINFO Stock Rx – A prescription for stock market

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Singur Land Acquisition policy at fault for Tata exit

October 3, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

Tatas have finally decided to leave Singur and have announced so. This is a very sorry state. It should have been negotiated with due appreciation of others point but somehow no body bent enough to placate the agitating farmers mood. Tatas say that the land acquisition had been done within the legal provisions. This is not a right thing to say with regard to such matters. I find a fault with Tatas as they could have offered an amount equivalent to the losses incurred in moving out for distribution amongst farmers but did not come forward. They were wary of running the plant under duress. This is a lame argument for continuous threat to security may not have been there and over time things would have settled down.

However, I would praise his resolve to deliver ‘Nano’ from out of an alternative site. There is, however, no need to consider WB or India as non-friendly to industry but land acquisition policy should put in place in after the recent experiences without further delay.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Market Matrix – NSG meet has been in favour of India

September 8, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

The much hyped and much awaited outcome of the NSG meet has been in favour of India. I was sure of the positive outcome on the basis that the advanced nation have greater need for India’s nuclear apartheid to end. They have lot to gain by exporting the technologies and material to India. As is normally expected, China has shown its reservations by absenting to vote and has not negatively voted. This was a big drama and has been enacted on the lines of script readied by US initially. Now the ball is in court of US congress and I think it has to be passed earlier than later not for India but for some other interests. As to the usefulness for India, this development has much to offer. India may have some problem in openly developing nuke-devices for war purposes but the knowledge and experience will help for it can not be kept locked in water tight compartment in long term. So, we will benefit in any case and after we are stronger the deal may give ample room to us to get going as we please or we may dump it if it is found to be too uncomfortable. The developments around the world and the objectionable behaviour of some of the responsible nations will give us enough excuses. Haven’t we seen the international diplomacy pursued by the mighty working on these lines. The markets will be saluting it.

The other big thing happening during the week end is related to Singur. Mamata and Buddha were made to sit together by the W.B. Governor Mr GK Gandhi at Raj Bhavan and they have given signals that would end the crisis. The end may not be to the liking of people concerned on both sides in its entirety but end to crisis it will be. No side can afford to be too tough in present day India where some public interest is involved. This is win for democracy and a lesson to the Chinese that totalitarianism is not the only road to follow for progress for we are seeing the strained conditions there and melting of road blocks here. It is another thing that pace gets slowed, which is not a bad thing to happen for it gives time to judge the rightness of direction of progress.

The last week saw major world markets shedding between 2 to 7 p.c. values while Indian markets have not lost even a per cent. Would you not call it a delinkage with the world markets.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Market Matrix – Room for discussion on Singur Land

September 3, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

There always is a possibility of slip between a cup and the lip. Just when the buyers who had postponed purchase of car with a mind to go for ‘Nano’ are finding themselves high and dry. The industry and India watcher have keen interest in what is happening and would happen eventually there. The corporate leaders have patiently (not wisely) have displayed their concerns and worries and are more than ready to find fault with Mamta.

Tatas also have not shown any imaginative response to put the ghost of popular dissent into bottle while they may have done so. Any offer to the affected people on liberal lines can ever be too generous as a person parting with land cultivated by him is almost distancing himself from his ‘mother’. When such sentiments as also the means of livelihood are in question, the parties concerned should have open mind, large heart, and sufficient means.

It is true that the courts have endorsed the acquisition of land but court can do what the legislature confines them to do. Since the question of demand for land by industry has huge proportions now, it should have been dealt not as something of routine. It would have been proper to let the matter be widely discussed with urgency at all possible foray. The consensus should have been allowed to emerge with state specific variations and an all-compassing policy and related law should have been put in place. If Mamta could carry the masses with her for so long and in such numbers, she can rightly claim to be the rightful negotiator for them, however, she should not have pre-fixed ideas. She should leave room for discussion. In a way since the first step of letting an evolved way to the land-acquisition be in place,has not been taken , it is a good thing that things have come to such a pass and matter may now be holistically dealt.

There is beauty in the whole exercise of collecting masses for protests but what has been made out as if the country’s industrial future is in jeopardy. The Tatas may have to suffer a loss of about Rs. 400 crs in relocating plant if the situation so demands and after the matter has been given a chance to be fairly discussed at a common platform. This is not a burden that Tatas can not bear. The lefts new found love for industry is welcome but their socialistic commitments required them to be more open than they have been. The affected farmers should have more than market price as compensation and that should touch the level of their expectations and adequate. We are all aware that when the industry closes down a plan does it remember who had given the land initially.

Would the industry want to share the booty by selling that land now with the erstwhile owners. The Bajaj’s are in the process of closing down their Akurdi plant and would be eventually selling the land. Do you believe that they would do any thing like this for the benefit of others? In this light, every thing should be evaluated and no hurried steps should be taken.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market

Market Matrix – Fiscal deficit and inflation

August 27, 2008

By krsna Khandelwal – A veteran market analyst

Friends,

Control of fiscal deficit within 3 p.c. is the challenge thrown up by the Fiscal Responsibility and Budget Management Act and the govt would be able to meet it in spite of its purse-opening policies for the farmers and for the govt. employees, thanks to inflation. The direct collection would grow by 46 p.c. and there would be flows from auction of G3 spectrum,transfer of surplus generated by RBI to govt (Rs 15 K crs against Rs 11 K crs last year) and also out of PSU stake sales.

TATA’s Singur venture is under threat from Mamata’s agitating stance and she is refusing to see reason while Buddhadev has declared that the project would remain in tact, come what may. He has tried to have talks with Mamata to resolve the issue but politicians are politicians, their first priority is scoring political points. Indian industrial progress has to go on in fits and starts. What is, however encouraging is the extension of invitation to Tatas by half a dozen Chief Ministers.

The World Bank has endorsed the Indian achievement of bringing the people living below one dollar a day down from 33.3 p.c. in 1990 to 24.3 p.c. in 2005. In all likelihood the position in 2008 is much improved and the future years may well prove to be doing away with poverty almost entirely , thanks to the exposure of people living in interiors through telecommunication and extensive road network. The govt may do or not do other things, the poverty alleviation will be done on back of technology.

Asian markets have shown improvement and this should reflect on Indian bourses.

Hari Om

BIRDINFO Stock Rx – A prescription for stock market