Thursday, December 11, 2008

Modi to visit village not on revenue records

Gandhi-nu-gam or Gandhigram, the name sounds patriotic, but the hamlet in Kutch district, despite its real existence, is a non-existent entity on the government records. Interestingly, chief minister Narendra Modi and other dignitaries are all set to visit the 'non-existent' village during the Rannotsav.


Though the village came into existence way back in 2001, it is yet to get the status of a village on the revenue records. Modi, along with cabinet and ambassadors of several countries, will visit this village during the much-hyped Rannotsav on Friday.

"Gandhi-nu-gam was created out of Ludiya after the devastating earthquake in 2001. For the predominant population of Dalits, the village is a beautiful place to live, for it has artistic Bhungas (thatched huts) made up of mud and grass to thwart any earthquakes.

Mostly foreigners visit our village as it is famous for handicraft, clay work and wood work. We have sent countless representations and even handed over a memorandum to the chief minister during last Rannotsav in February last. Here, the Dalits do not get the benefits of a regular village. In fact, Modi would be visiting our village third time as chief minister," Vaiyal Node, the sarpanch of the village who is also the vice president of the Kutch district minority cell of the BJP, told DNA.

He said that Ludiya village has been facing water problem. "We get water once in a week under a water supply scheme of the water supply board. The supply is only three to four hours. We are proud that ours is the only village in the Pachham area to have been selected for the second consecutive Rannotsav as a showcase village because ours being the village of artisans," an enthusiast looking Node said.

The visit of the CM and his entourage is limited to all-Dalit Gandhigram and all the villagers are all set to welcome the dignitaries from home and abroad.
"We have mud plastered our Bhungas afresh. Normally, we do this before Diwali but since the dignitaries are coming to our hamlet, we have to beautify our houses to welcome them. We have cleaned the streets at our own cost because we consider Rannotsav as our own festival,'' Marvada Khajur Kanya, a resident, said and demanded immediate revenue status for their hamlet.

District collector and chief organiser of the Rannotsav, RR Varsani, was not available for comment. Additional collector GC Waghela said that it was not the time to raise such an issue when they were busy with the Rannotsav preparations and added that the issue would be taken up later on and needful would be promptly done.

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Sunday, November 23, 2008

Company Update: Reliance Industries

Reliance Industries (RIL) has closed five of its seven polyester and petrochemical units at Patalganga near Mumbai soon after offering exit option to employees.

The move, which comes in the backdrop of a global slowdown, aims to improve profit margin amidst falling demand for polyester products worldwide.According to reports the company has shut down plants for manufacturing polyester filament yarn (PFY), polyester staple fibre (PSF), paraxylene (PX), purified terephthalic acid (PTA) and linear alkyl benzene (LAB).

However, it is yet to close down the second units of PSF and PFY. For the last one month, production from these units has been partly paralysed and employees were sitting idle.

The company has plans to convert the Patalganga site into a warehousing facility for retail activities due to its proximity to Mumbai.

RIL had recently converted another IPCL facility in Navi Mumbai into Reliance Corporate Park, which is envisaged to be the controlling hub for the Mukesh Ambani group’s global operations.

It plans to upgrade and automate most of the old polyester units since the profit margin from operations have shrunk after the price rise of crude oil, the raw material for polyester.

RIL had shut down its polypropylene plant at the Jamnagar refinery complex for a month to improve product swing capability and increase propylene yield.
We maintain a BUY on the stock with a target price of Rs1,880.

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Subex Azure : Kotak Securities maintains REDUCE on Subex Azure

Subex Azure’s Q2FY09 results came in below expectations. While EBIDTA was marginally higher, lower other income component impacted net profit.

Mark-to-market (MTM) loss on foreign borrowings stood at Rs706 million for the quarter. Order booking higher q-o-q but we remain concerned about the macro headwinds.

Management maintains FY09 products revenue guidance of Rs 5 billion and $125 million (exchange rate assumption is surprising). Maintenance of rupee guidance despite the significant rupee depreciation indicates reduction in expected US dollar revenues, negative in our view.

The PAT guidance (including services business) at $12 million excludes impact of MTM losses. The unpredictability of Subex’s model prevents us from becoming bullish. The overall macro scenario in telecom and related verticals makes us cautious.

We have tweaked our lower-than-guidance FY09 EPS estimates with an expected EPS of Rs12.1. Our DCF-based price target works out to Rs65 (Rs127 earlier). The stock has corrected significantly post our previous Reduce recommendation. Continue to recommend REDUCE due to uncertainty over the US economy. Forex loss on FCCBs (notional, as of now) and potential equity dilution arising from FCCB conversion are the other variables.

We may review the recommendation in case of sustained improvement in performance in future quarters.

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