Kirit Parikh Committee recommendation:
GAIL could benefit the most. If implemented, the proposals would benefit GAIL the most, as it has not been included in the new proposed graded subsidy sharing mechanism. The proposed formula (post abolition of auto-fuel subsidy) would be applicable only to players that were given nominated blocks by the government (ONGC, OIL) and would thus not, logically, include GAIL. http://prabhakar-views.blogspot.com/2010/02/inflation-taxation-and-social-justice.html
Technical view:
GAIL Cmp Rs.419 is trading near its all time high of Rs.445 and trading comfortably above short & long term moving average, this stock can target Rs.550 in next 18months or even before.
http://akprabhakar.blogspot.com/2009/11/gail-to-benefit-from-gas-highways.html GAIL’s pipeline is around 7,000 km long now and would go up to 14,000 km by FY-2013, Transmission capacity would increase to 300 mmscmd from 150 mmscmd. GAIL current capacity utilisation to be 55-60% is expected higher with capacity utilisation at 70-75% by 2012-13. New tariff regime – likely to be announced by December2009, average blended tariff to increase by 5-10% say’s management in analyst meet.
The government is planning to start gas supplies for transportation and cooking in 201 new towns by 2015. Pipe transportation is an economical mode of transport compared to traditional modes of rail, road and sea transport. This mode of transportation also helps in saving scarce natural energy resources and time taken for transportation. However, pipe networks need to be guarded from any kind of damage.
Update on Fabulous-15 stock
Neyveli Lignite Corp. Ltd is seeking joint venture partners to identify and acquire coal blocks in Asia and Africa. The company is also planning to bid for ultra mega power projects under tariff-based competitive bidding and has sought necessary approvals from the government for the same, it said. The coal extracted from the blocks will mainly cater to the fuel requirements for the power projects and serve as a fuel linkage for its 2x500MW power project at Tuticorin in Tamil Nadu. The firm currently has three mines of total capacity of 24 mt and three thermal power stations of total capacity 2,490MW.
