April 2011
April 11, 2011
Coal is the biggest source of Energy for Electricity Production in the world and its use is expected to continue to grow to 44% of the Electricity Production by 2030 (IEA).Despite Coal having many dangerous disadvantages,its Advantages of cheapness and abundance have made it the Fossil Fuel of choice.With global reserves estimated to be around 200 years,it does not have the "peak oil" characteristics as well.Though not a Coal Fan,nonetheless Coal stocks are a great investment choice due to the fact of its growing demand which is outstripping supply.China and India are massively growing their electricity,steel and cement production which requires billions of tons of coal.China consumers almost 45% of the global coal production while Indian demand is growing by leaps and demands as well.Indian Power Utilities are grabbing up Coal Mines in Africa,Australia and Asia to secure feedstock for their gigawatt thermal power plants.Despite its growing importance Coal does not have a lot of choice in terms of investment unlike Fossil Fuels like Oil and Gas.Here is a list of Coal Stocks which one can invest in and the sole Coal ETF - Market Vectors Coal ETF (KOL).
April 11, 2011
Coal is one of the most important sources of energy for mankind providing an easy way to generate energy in a cheap manner.The relative abundance and low costs of using Coal has made it the the first choice of Fuel for building Power Plants in the world.Coal has huge importance as an Energy source and forms the most important raw material for Cement and Steel.Coal is also used in a variety of other industries like Paper,Aluminium,Chemical,Transportation and Pharma.However Coal also has huge negative consequences as it is the largest source of Carbon Emissions which happen during Coal Combustion.Coal Mining despite two hundred years remain as hazardous as ever resulting in thousands of deaths in India and China.Mercury,Arsenic and pollution of other harmful substances into the environment causes diseases and many deaths as well.However for countries like India and China there are little other alternatives and there is no conviction amongst policymakers to change their energy strategies as well.So the advantages of Coal are currently overpowering those of the Cons of Coal.This despite Coal being the dirtiest form of Energy and causing many deaths globally.The main reason for the cheapness of Coal is that the societal costs are not added on explicitly to the Price of Coal making it seem artificially cheap.
April 10, 2011
Biomass Energy is the oldest source of Energy known to mankind and till the 19th century was the primary energy source.Even now Biomass Energy is used of Heating and Cooking by a large percentage of the Human Population.Biomass Energy with improving technology is being now used to construct large power plants.Growing Concerns over Climate Change and soaring Coal Prices are making some Power Plants convert from Coal to Biomass as a Fuel Source.Biomass Energy has many advantages such as being Carbon Neutral,using Animal and Crop Wastes in a useful manner,being poor friendly etc.However Biomass Energy like other Renewable Energy forms of Geothermal Energy faces problems of resources.However Biomass Energy suffers from some unique drawbacks like the problem of regular feedstock which becomes tough to acquire in times of drought etc.Biomass Energy also if not used appropriately can result in terrible air pollution as is the case with a majority of the Biomass Energy being used in the backward areas of the world today.Here is a list of the Cons of Biomass.
April 10, 2011
Coal is a dominant source of energy for humans accounting for almost for a quarter percentage of human energy consumption and majority of the global electricity production.However Coal is considered as the Dirtiest form of Energy as it leads to Air Pollution,Mercury Poisoning,Global Warming.Renewable Energy is considered as the solution with its non-polluting characteristics,energy security,freedom from peak everything.However Renewable Energy is way more expensive than Coal Energy making it difficult for Renewable Energy to take over Coal.However growing Global Warming Costs will weigh in the future making it inevitable that Green Energy catches up.Here is a list of the pros and cons of Green vs Black where Green represents Renewable Energy and Black represents Coal.Note Green Energy will ultimately win in the end,its only a question of how soon because if the realization comes too late then Climate Change might go far enough to cause catastrophic damage.
April 10, 2011
Real Estate Prices in India have gone through the roof crossing the highs they made during the 2008 run-up.Note real estate in a lot of places globally are in a bubble right now - China,Australia,Canada .However the India Real Estate Bubble is seldom talked about as it has not reached the levels reached for example in China.However the property prices are becoming increasingly irrational.The causes of the Real Estate Prices increases in India are mostly due to the fact that Market Forces are not allowed to operate freely.The regulations,corruption,lack of transperncy,vested interests,cultural factors all have a role to play.Here are some of the reason that I think Real Estate Prices are totally irrational in India.Readers of this Blog are urged to add their views as this is a complex discussion and many people will say that Real Estate in India in not a Bubble but a result of High Population Density,Demand,India's Economic Growth .
April 10, 2011
India's Income Disparity is not growing among the rich and the very poor but also widening between its super rich and middle classes.Note India's Middle Class is not as big as a percentage of the population in the developed countries and its per capita income is also much lower.However India's Middle Class is growing as the economy grows by 8-9% and despite the lopsided economic growth some of the massive wealth that is being generated does trickle to the middle class.However those gains are being eroded by a Persistent Double Digit inflation which has entrenched itself.Despite periodic interest rate increases,India's Central Bank has miserably failed on the Inflation Front in the last couple of years.First it was having too loose a policy to overcome the effects of the global eco crisis in the aftermath of the Lehman collapse.Now it was too slow to raise rates as commodity price increased dramatically.
April 10, 2011
MT India is a short form of Medical Transcription in India .Medical Transcription is one of the fastest growing outsourcing services in the Health Industry and is being increasingly outsourced the the world's top off shoring destination India.Note this provides a win-win for both the parties as the medical services gain by lowering their costs through outsourcing of a basic rudimentary service at a much lower price while the outsourced destinations gain through increased employment and labor.There are a number of companies providing end to end medical outsourcing services in India.Note Medical Billing Companies in India are increasing at a rapid rate and growing in size as well.Though much smaller than their technology outsourcing cousins,Medical Transcription,Coding and Billing Companies in India alongwith Legal Outsourcing Companies are a very fast growing niche in in the Indian Outsourcing Industry.
April 9, 2011
Toy Rentals are Companies that work on the concept of Libraries where Books are substituted by Toys,Children Books,Children Puzzles etc.Toy Rentals are a relatively new concept and have gained traction in different countries first though they are far from mass scale such as Car Rental Companies.The concept of Toy Rental Service or Toy Libraries is fast catching on in developing countries like India as well where the obvious value add to both companies and buyers make it a sharply growing industry.
Toy Rentals are a Green Concept as they help in reducing Waste,Promotes Sharing and Reduces your Carbon Footprint.It not only is Green but also has the following advantages
1) Reduces Cost of Ownership of Toys,Books,etc
2) Allows a Child to Play with new and unique toy not possible in a single ownership model
3) Reduces the Space Requirements in your House which also helps the Environment
April 9, 2011
Coal is the Biggest Contributor to Global Warming generating billions of tons of carbon dioxide during combustion.Coal is one of the most abundant fossil fuels available on earth and it is expected that Coal will last another 200 years.The mass usage of Coal and its deleterious effect on the environment makes Coal a controversial choice of Energy.Coal is responsible for 25% of Human Energy Consumption and is the largest producer of Electricity in the world.
Coal causes Human Deaths in the Thousands each year directly through Mining Deaths and Indirectly through Human Diseases like Lung Cancer,Mercury and Arsenic Poisoning.The costs of Coal are artificially low because these costs are passed onto society and not explicity added onto the cost of coal powered electricity or coal products like Steel and Cement.Reducing Coal Usage gradually is a big necessity but given the growing hunger for energy by India and China and lack of a Climate Agreement that looks unlikely in the near future
April 9, 2011
Coal is one of the cheapest and most important sources of energy, responsible for 41% of electricity productionworldwide. In many important countries like India,China,Germany,USA,Coal is the primary source of electricity and energy.Other smaller countries also heavily rely on coal for example Poland 94% , South Africa 92%, China for 77% and Australia for 76%.Coal has played this a pivotal role in the development of mankind and his progress into the Industrial Age.Coal is an essential raw material and fuel for important global industries like Cement and Steel.Different qualities of Coal are used for different purposes.For example coking coal with higher carbon percentage is used in Steel Production while Thermal Coal is used in Production of Electricity.It was during the Industrial Revolution in the 18th and 19th centuries that demand for coal surged. Coal is responsible for almost a quarter of the global energy production,41% of the Electricity Production and more than 60% for Steel Making.Here is a list of the Major Uses of Coal
April 9, 2011
Coal is one of the most abundant fossil fuels available on earth and is a major supplier of energy.Coal is the largest producer of electricity in the world accounting for more than 40% of the global electricity production.This is expected to rise to 44% according to IEA.In the last decade global coal consumption has grown faster than any other fuel.Coal has many other important uses as well such as steel production, cement manufacturing 6 billon tonnes of hard coal and 909 million tonnes of brown coal were used with China accounting for almost 45% of the global coal consumption.Coal is also one of the largest sources of Carbon Dioxide Emissions as well responsible for double the GHG emissions from Oil.Coal is regarded as the dirtiest form of Energy due to high Carbon Emissions,Pollution,Hazardous Substances such as Mercury,Deaths due to Coal Mining etc.However the cheapness of coal,its established industrial base and abundance makes Coal indispensable in the Short Term just like Nuclear Energy.Here are the main Advantages of Coal
April 9, 2011
Anna Hazare is to end his fast unto death on April 9,5 days after starting his hunger fast demanding the implementation of a Jan Lokpal Bill to replace the toothless Lokpal Bill which has been gathering dust for the last 42 years.The massive public anger against endemic corruption in public life had made the position of the government and the ruling Congress Party extremely uncertain.After trying to defame Hazare as a RSS stooge and worse,wiser counsel seems to have prevailed.Seeing the growing popular support for this anti-corruption movement,the leaders of the Congress Party have totally capitulated to all demands made by the civil society movement.Twitter and Facebook have played an important role in galvanizing popular opinion against corruption and for Anna Hazare.It could mark a turning point for the Indian state as Corruption becomes increasingly difficult.
April 8, 2011
China Wind Power Market has become the biggest in the world with more than 18 GW of capacity installed in one single year Note China has managed to double its capacity each year since 2005 and at the end of 2010 Wind Capacity totalled 44 GW which makes China the biggest Wind Power country in the world overtaking the USA.China has now got 7 of the Top 15 Global Wind Turbine Manufacturers and 2 of the Top 3 WTG Companies.China's Massive Demand for Energy has made power plants mushroom in the country where more than 70% of the electricity is met by Coal.Wind Energy still forms only a small part of the power mix at less than 7% of the total power capacity and serves only a fraction of the Kwh of electricity given the lower load factor of Wind Power.Note Wind Power has grown in China as its Advantages as a Clean Source of Energy far outweigh its Cons.However the rapid demand growth has made a top inevitable as a country can only install that many megawatts in a year.
April 8, 2011
Tunisia's Mohamed Bouazizi was an unlikely and unknown here protesting againt the daily suffering of the high handedness of authroties while Tahrir Square in Egypt was where the regime toppled.India is still far different from those situations as there is no demand for the government to go,only for a strict anti-corruption law.However Anna Hazare and Jantar Mantar have the ability to become far more than simple a protest on Lokpal Bill.It could be the tide which washes away the abject helplessness of Indians over the corruption of the powerful and rich.Here is a short excerpt of Jantar Mantar and about Anna Hazare
April 8, 2011
The Government of India has been trying to put hurdles in the 2G Telecom Scam case right from Day 1.Its blatant shielding of the rich and powerful involved in the massive billion dollar corruption involving ruling party alliance members and top corporate houses has been apparent.The proof of the government malintentions was India's top court taking over the supervision of the investigation agency CBI with itself.This was a major slap for the government as CBI falls under the authority of the Home Ministry.With the CBI having filed a chargesheet which names the former Telecom Minister Raja and some billionaire businessmen,the government is again trying its stalling tactics.The government and its repsentative lawyers did not agree to the name of U U Lalit as special public prosecutor.Additional Solicitor General (ASG) Indira Jaising raised objections despite K K Venugopal, who has been appearing on behalf of CBI and ED suggesting his name.
April 8, 2011
USA has been one of the worst countries in the world in regards to climate change and global warming issues.While countries have pledged to cut down […]
April 8, 2011
TEPCO the owner and operator of the Damaged Fukushima Nuclear Plant reproted that its Onagawa Nuclear Power Plant in the Miyage Prefeture also leaked very small amounts of radioactive water.About 3.8 kgs of radiated water from one of the spent fuel rod pools spilled as three out of four external power supply units in Onagawa shut down leaving only one power source to cool the spent fuel. at the Nuclear Plant failed after the 7.4 Richter Scale Earthquake off the seas near Fukushima.The cooling systems have been restored and there is no more damage at the Nuclear Plant like Fukushima.Note the workers at the Damaged Dai-ichi were evacuated due to the Tsunami Warning issued in the aftermath of the Earthquake.These workers have again returned in their radiation fighting work at the Plant.USA said that it seems that the worst scenario of serious contamination from the Fukushima Nuclear Accident has probably passed.
April 8, 2011
India's Wind Energy Market is the 5th largest in the world and is the biggest renewable energy sector in India (non-hydro).Wind Power forms almost 70% of the Alternative Energy Capacity in the country and will have an important role to play to meet India's target of 10% Renewable Energy from Electricity by 2020.Wind Energy is very cost effective in terms of cost and is approaching Gas Electricity Prices.Combined with the favorable tax treatment,accelerated depreciation,subsidies by different sates,Wind Energy has become the favored Green Energy Sector for investment by large private sector companies.Wind Power Plants are increasing in number and scale as larger companies like Caparo enter the Wind Power Sector.Wind Turbine Manufacturers in India are fast expanding capacity and investment to capitalize on this opportunity.Suzlon remains the Bid Daddy of the Wind Industry in India,however a number of foreign and domestic Wind Turbine Manufacturers are giving it a run for its money.Global Wind Turbine Leaders like Siemens,Enercon,GE have started Wind Turbine Equipment Manufacturing in India in recent times to lower their costs.Here is a list of the Major Wind Turbines available in India of different types and capacities from the various Different Wind Manufacturers.
April 8, 2011
Motor insurance is an essential requirement for all new vehicles. This applies for both commercial and personal use. Under the provisions of Motor Vehicles Act, all vehicles that ply in public places must have an insurance policy that at least covers "Third Party Liability" as specified under the Act. A Comprehensive Motor Insurance Cover in addition to the mandatory third-party cover also protects the car owner from financial losses, caused by loss or damage or theft of the vehicle.ost auto insurance companies in India have comprehensive policies to help their customers. Some of them have also tied up with top automobile manufacturers for a fast insurance process. Auto insurance companies have separate plans for two wheelers, four wheelers, commercial vehicles. Car Insurance Premium is calculated based on the car's Model, Age and the Registration City. Due to this Pricing Model, in some cases, the premium for similar cars could be higher as well. Some of the biggest Insurance companies in India are listed below:
April 8, 2011
Wind Power Plants has seen a phenomenal growth of around 33% CAGR in the last 5 years and the total capacity at end of 2010 was 11800 MW with most of the capacity installed in the state of Tamil Nadu which is the largest state in terms of Alternative Energy Capacity in India.GWEC has set an ambitious target of 65 GW for Wind Energy in India by 2020 which means an addition of 5 GW each year which seems too high given the wind power potential in India is only around 65 GW.However using low wind speed sites may increase the potential besides the use of offshore wind power in India.A number of Wind Turbine Manufactures in India have set up facilities attracted by the domestic market with Suzlon being the biggest Wind Company in India.
The Indian Wind Energy already has the 5th largest installed capacity in the world and is set to grow at a rapid pace driven by investments from the private sector attracted by the generous wind subsidies from the state and central government in India.Most of the Installed Wind Capacity in India is located in the southern and industrial states of the country.The other states like UP,Bihar lacks sufficient Wind Energy Capacity despite having high power tariffs and substantial electricity deficits.It can be said that Wind Power in India is being developed only in the progressive states like Gujarat,Maharashtra and others.To continue to grow at the same rate,the industry needs to diversify geographically but that would need the backward state governments to pull up their socks.
April 8, 2011
Anna Hazare who is fasting unto death in the capital of India has called for Indian citizens for fill jails on April 12 as the government has refused to key demands in the formation of the Committee to write the LokPal Bill.With millions supporting Anna Hazare's agitation against corruption amongt public officials in India,the ruling Congress Party is under tremendous pressure.However it is trying to wiggle out of this situation by making token concessions like giving half of the committee to civil society but refusing to give it "Official Notification" and not giving the chairmanship as well.
April 7, 2011
Solar Carports are a relatively new Solar Energy Product compared to other Solar Products like Solar Heaters and Solar Cooking.Solar Carports are fast catching on as their dual use of protecting,shading a car as well as providing electricity to nearby offices and buildings.It makes use of real estate that would go waste so it provides a lot of value add besides helping in protecting the environment as well.
April 7, 2011
It is surprising to see the US Media jumping about saying the General Electric will build the biggest solar factory in the US when it is completely factually wrong.There are other companies that add 400 MW in a single quarter these days (eg.LDK). By the time GE builds its 400 MW Cadmium Tellurium Solar Panel facility,there will be around 20 players in the world with more than 1000 MW capacity.GE has been claiming high efficiencies for its Thin Film Solar Panels but the claims that it will be able to dethrone First Solar as the Leader seems far fetched currently.Note First Solar will have almost 7 times more capacity worldwide by the time GE builds its first solar panel facility.GE has been long been developing the Cadmium Tellurium Technology buying up Prime Solar.
April 7, 2011
Seoul witnessed Radioactive Rain as winds blew from neighboring Japan which has witnessed the second biggest nuclear energy accident after Chernobyl.Though the the Rain contains cesium and iodine particles they are well within the safety limits according to the South Korean Nuclear Safety Regulator.South Korea has already protested against the lack of information about the Nuclear Emissions and the Deliberate Dumping of Toxic Seawater by TEPCO.However many schoolchildren stayed at home as worried parents were concerned about the impact of the radiation.China the other major close nation in proximity to Japan has also detected low levels of iodine in spinach in 3 provinces.China had earlier reported trace levels of radiation in Guangdong and Shanghai.Note Iodine has a very low half-life so that problem should not persist for long.However cesium is another matter as it can lodge inside human body and keep emitting for a long time internally.
April 7, 2011
India launched its Solar Mission by the name of Jawaharlal Nehru National Solar Mission (JNNSM) with a lofty target of 20 GW by 2022.The Solar Mission has been divided into 3 phases and promotes solar energy installation,solar industry,solar heaters and off grid solar.Note the Solar Mission provides subsidies and incentives to promote the use of Solar Energy from the Central Government.Different States such as Gujarat have enacted laws to support solar energy on their own which is seperate from the Federal Target for Solar Power.I think the 20 GW target for 2022 is very low and will be easily exceeded but that is a separate discussion.The Solar Mission is not a rigid document but is a work in motion as the second and third phases will be implemented taking in the feedback and success of the first phase of the Solar Mission which has already announced the Solar Project Winners.
April 7, 2011
Seeing the rapidly mounting support for the movement,the government has tried to cut losses sending ministers to hold talks on ending the fast.Thousands of schoolchildren,executives,college students has spontaneously joined the Anti-Corruption Movement at Jantar Mantar in Delhi and millions more in different cities across India.It was the first real chance to protest against the endemic corruption and brazen arrogant behaviour of the ruling classes.Many politicians sensing the wind were trying to associate with Hazare.Shashi Tharoor the sauve face of modern India who had been discredited by his unethical conduct in IPL too tweeted that he supported Hazare ( don't know what that means,use your position to gain money unethically in IPL and Commonwealth Scams and support anti-corruption).For now its a success for the Indian democracy but the ultimate success will be when a strong Lokpal Bill is passed.
April 7, 2011
Solar Industry is a fast growing exciting industry with its inevitable growth pangs as well.The first phase of India's Federal Policy has seen many hurdles and its success is in doubt,on the other hand Gujarat has managed to attract investment and power plants through a forward looking subsidy.States like Uttar Pradesh,Delhi,Maharashtra are also tentatively coming up with their own incentive policies.The Industry will see many ups and downs before it becomes a major billion dollar industry.Note Solar Power Industry has become the fastest growing in USA where it doubled last year and looks set to double this year again.The Nuclear Accident in Japan has given fresh energy to Solar Power with China set to double its target to 10 GW by 2015.
April 7, 2011
Anna Hazare the eminent social activist fast unto death may become a major turing point in India's history with massive spontaneous support for the Jan Lokpal Bill drafted by respected members of the Civil Society.The Ruling Congress Party which tried to disparage Hazare through usual political stunts like calling him a Opposition Party Puppet has become unhinged in its respone.While 2 days ago,the Congress Spokesperson Tewari was saying that they did not really care about the hunger fast by Hazare,now the Congress Ministers are rushing to placate him.While Kapil Sibal is calling for more time ( don't know what they did for the last one year when one after another scam was revealed),Moily says that changes will be incorporated.
April 6, 2011
Medical Billing Companies in India have grown tremendously like other outsourcing function in India such as Legal Outsourcing,IT Outsourcing etc.The growth in Communications and Internet has been the biggest enabler of the Cost Arbitrage between Developed Countries and India.The Globalization of Capital,Information and Trade has not been accompanied by a true Globalization of Labor.However the irrepressible force of capitalism searching for higher profits has made Medical Billing to India a big success leading to a win win relationship.Medical Transcription Companies in India are still quite small compared to their giant IT counterparts like Wipro,TCS etc.Most of these Medical Billing Companies will probably not achieve that scale either being eventually absorbed by the Biggies as they look to expand their Domain Expertise to Medical Companies.Here is a list of the major Medical Billing Companies in India
April 6, 2011
India is a talent-rich country. India has technological agility, quality, cost control, time-to-market and competitive advantage. India exports software to 95 countries around the world and is home to the biggest IT services companies globally in the form of Wipro,Infosys,TCS. India enjoys the confidence of global corporations with 82% of the US companies ranking India as their first choice for Outsourcing - Medical Transcription, , Call Center, Litigation Services, and Data Conversion & Data Capturing Services etc. India as of now stands out as a major outsourcing center with facilities available to handle both high end as well as low end services. Most Indian outsourcing service provider companies are quality certified with international certification like ISO-90001 and have resources to handle entire process lifecycle.Companies across the world outsource work to India to stay competitive.