Thumbs up: Power Sector

The power sector in the country has a bright future, as it is witnessing a steady growth With energy deficit showing a decrease each year, the power supply situation is improving In 2009-10, the deficit was 10.1 per cent. This came down to 8.5 per cent in 2010-11 and is now 7.9 per cent (2011-12). By 2013-14, the country will be in a position to meet the complete demand. However, this does not mean that there will not be any loadshedding. The 12th Plan, the Union Government would accord priority to hydro projects, renewable energy sources, and nuclear and gas-based projects to minimise carbon-dioxide emissions. However, hydro capacity addition is likely to be slow during this Plan period owing to several hurdles, including land acquisition. One of CEA's new initiatives was low carbon growth strategy, which included scrapping old units. About the issues before the power sector, he said that many distribution companies were caught in a vicious circle where they were unable to buy or generate power by importing coal or take up new projects with banks not ready to give credit. The poor financial health was compounded by high aggregate technical and commercial losses and the absence of tariff revision.The power scenario in the State was not as bad as it was made out to be. The major issue before the supply companies was to reduce the aggregate technical and commercial losses from around 30 per cent to less than 10 per cent which they are achieving at a significant rate.

Thumbs Down: Aviation sector

It is fair to say that Indias Aviation Industry on a downward spiral. India has a population of over 1.17 billion people, and even though poverty is a serious issue and many consequently use the extensive train network for transportation, the aviation market is still huge. If proper stock advice were granted to Indias Aviation Market, and investors believed in it, the level of tourism could rival those of North American and European territories; but alterations must be made. Recently Finance Minister Pranab Mukherjee made some clear provisions in the recently announced 2012 Budget to help the struggling Aviation Industry. Mukherjee proposed that the sector would be allowed to accumulate capital through external borrowings, valued at one billion dollars. Mukherjee also decided that in order to deal with the high fuel costs of the ATF, which is a root problem in the industry, the government would allow direct import of ATF. He stated that a proposal to permit foreign airlines to partake in up to 49% of equity of an airline company, operating scheduled or non-scheduled services, is under active consideration. However, even though this may be a step in the right direction, airport charges and taxes are still too high. But the main problem and its downfall within the Indian Aviation industry is the lack

of competition, especially with the Kingfisher Airlines situation. When Kingfisher bought off its other airlines competitors, it was yet again a demonstration of how tycoons and more aggressive business practices can create such a downfall in an entire country. Subsequently Kingfisher is on the verge of collapse and is in need of government assistance, and as weve seen with the U.S. bailouts, this cannot stimulate any kind of economic gain.