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Praful Patel Warns Investors Wary on Indian Businesses; Govt Reform Lacks Clarity

  • In an interview with Bloomberg UTV, heavy industries minister Praful Patel said that people are wary of Indian business environment right now. “Power sector is going through a host of problems and government agenda cannot be seen to be in 'slow motion',” he added.The power sector is grappling with multiple woes: fuel shortages, spiraling coal prices and some private players are eyeing renegotiation of their existing power purchase agreements (PPAs) to reflect the higher fuel costs. “Union, state governments need to introspect on power issues, and power capacity needs to be equitably distributed. State utilities are selling power cheap, which is not healthy financially,” Patel elaborated.

Below are the other key highlights of the interview:

Turmoil in capital goods sector

•    BHEL remains a well-managed, fine company

•    BHEL needs to get new projects on continuous basis

•    Need to regulate import of capital goods

•    Need to proactively ensure tariff protection for companies

•    Import duties should protect domestic companies' order flow

•    Government knows that slowdown in agenda needs to be corrected

•    Will need to concentrate on BHEL FPO first

•    Awaiting the right time for BHEL FPO

•    Delay due to market conditions, BHEL stock weakness

•    Need to unlock value in BHEL at the right price

•    Do not see BHEL FPO in the near future

Fuel price hikes, govt reforms?

•    Cement Corp, Scooters India still recovering very slowly

•    Auto sector asking for clarity on diesel policy

•    Need clarity on diesel policy, will talk to finance ministry

•    Government must deliver reform, projects on time

•    People wary of Indian business environment right now

•    Govt needs to correct Indian business environment soon

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