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GSMD
User Rank
Manager
Re: Should wait for election?
GSMD   2/4/2014 8:44:30 PM
NO RATINGS
One fab is coming around Delhi (BJP had the most seats) and the other in Gujrat (ruked by BJP). Both BJP strongholds. Considering they will get the majority in teh coming elections, it is unlikely they will object if they came to power. Electronic manufacturing is a major BJP hot-button so I do not think they will upset the applecart. Enron was a bad deal per se and not well though out. After all look how it collapsed in the US.

Generally there is a basic understanding between the Congress and BJP on such issues. Industrial policy generally does not get held hostage. The problem is more with theIndian partners in these fabs, Jaypee is having cash flow issues due to its const. business (most const. companies are these days) and HMC does not have a track record. Wish a more established player like the TATAs had got involved. Fabs are a very long play and you need the stamina to stay the distance.

_hm
User Rank
CEO
Should wait for election?
_hm   2/4/2014 6:39:41 PM
NO RATINGS
I suggest this decision should wait for general election. This is safe becasue, if government changes after election, this decision will become controversial and vendors may not be happy with Indian government. Like that happen to Enron.

 

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