Saturday, December 07, 2013
Is Janet Yellen Smarter Than Me?
~December 6th, 2013
Yellen's Talking Points
During Janet Yellen's Senate Banking Committee testimony to paraphrase she said that she doesn't see a bubble in stock prices based upon some of the metrics they utilize at the Fed, and she mentioned that the rise in the 10-year Bond Yield approaching 3% caused the Fed to delay their previously telegraphed taper move in October.
There are a couple of disturbing points that came out of her take on bubbles and the rationale behind not tapering a mere 10 or 15 Billion dollars given the monthly commitment of 85 Billion in Fed Purchases every month.
Since when did the Fed outright Buying of Bonds become Normal?
Just the mere notion given the history of markets and the Fed's participation in Markets that the Federal Reserve buying $85 Billion of Monthly Asset Purchases is somehow normal or not just an exceptionally unusual participation in financial markets is quite troubling.
First problematic issue is that they do not think this policy is extraordinarily unusual, and second problematic issue is that such an extraordinary policy might not have some unintended consequences or side effects for financial markets.
Are Markets Free or Social Instruments?
The Federal Reserve has no business whatsoever in affecting market prices of stocks and commodities, and it seems that the original purpose of easing monetary policy by lowering the Fed Funds Rate to near Zero is one thing, and yes this derivatively will effect Bond Prices and the Bond Markets, but they have no business artificially influencing the Bond Market through outright purchases of government Bonds.
This is far overstepping their purview and it vastly distorts market prices, which is bad enough in and of itself, markets exist for a reason to set prices given fundamentals of supply and demand that reflect economic conditions in the real world.
But to not expect the massive influencing of the Bond Market to then have derivative effects into other markets like commodities and equities and that somehow prices could appreciate to unsustainable levels that come crashing down once the intervention is discontinued is just the height of irresponsibility and short-sightedness.
Market & Trading Experience in Short Supply at the Federal Reserve
Anybody that has actual market experience, someone who regularly through good and bad business cycles trades stocks, bonds, commodities and currencies recognizes how these instruments trade under all conditions.
This is what the Fed lacks is any understanding of what constitutes normal price discovery in financial markets. Economic theory may be great for setting interest rate policy from a Macro level, but once the Fed started directly intervening in Markets, then they need some trading experience to spot bubbly conditions of asset prices, i.e., how the instruments normally trade versus the current market price action.
Distorted Price Discovery in Markets
Whenever traders get to the point where they know they can buy every dip for the last five years because the Fed was always going to bail them out either by restarting another QE Initiative, or the current backstop of 85 Billion of Direct Market Asset Purchases this distorts in a highly artificial manner true market price discovery.
It also leads to borrowing heavily on margin further incentivized by exceptionally low borrowing costs that adds additional fuel to the fire in elevating asset prices to unusually highs levels relative to the actual fundamentals of the market under normal price discovery conditions.
Isn't this the same Methodology & Psychology of the Last Bubble Cycle?
The most irresponsible portion of this behavior is that this is precisely the behavior that led to the financial crises, the housing crash and resultant mortgage, bank and financial system bailouts of Wall Street firms like AIG, Bear Sterns, Lehman Brothers and Citibank.
Every regulator, politician, Fed Policy figure and Bank Executive all agreed that they had learned the lessons of using excessive leverage, excessive risk taking, and that the Federal Reserve especially was going to set the precedent of "Moral Hazard" in that they were going to go out of their way to avoid the monetary policies of excessive intervention that led to the overly disproportionate risk taking responsible for the Housing Bubble.
And yet in just five short years we have forgotten all this wisdom and learning points and have thrown prudent risk management strategies regarding monetary policy out the window and summarily fail to recognize the Fed's hand in creating a massively unsustainable bubble in financial markets once again.
10-Year Yield & 3% Threshold - Really?
If the Federal Reserve was threatened by the 10-Year Bond yield approaching 3% so much that they couldn't taper a mere 15 Billion dollars, then what does that foretell for the future of these markets? The Fed ought to ask themselves this very question, and it ought to keep them up at night!
This says more about the problem that the Fed has gotten itself into with regard to this unusual monetary policy initiative to intervene in financial markets - than at what price level constitutes bubbly conditions in stock prices.
They cannot even approach un-intervening in markets because they have overstepped any normal fed policy boundary or any market policy for that matter that the level of artificial influence is to such a high degree that they basically are the entire market in certain pricing dynamics - unless they are prepared to be the market (whole other set of unintended consequences) then going from an interventionist market back to a free market means absolute chaos - and the classic example of an artificial bubble!
This is the 10-Year Bond Yield; the fact that a 3% yield threatens the Federal Reserve is absurd. This is not the 1-Year Yield, we are talking about a 10 year time period; shoot the Fed Funds Rate was 5.5% just 6 years ago!
Get a grip Fed because you're worried about the least worrisome dynamic of your Fed Policy's unintended consequences - what happens when you have a Bond Market after five years of intervention that returns to market forces all the sudden and the US is facing a 12% interest payment on its debt? This is what the Federal Reserve should be worried about down the line.
My parents actually had mortgage rates in the 18% range during their lifetime - this degree of escalation in higher yield is not so unprecedented as some might think. It can happen once again!
This isn't my First Bubble Rodeo!
I have been a market participant for the last fifteen years and have seen the Tech Bubble, The Enron-World Com Bubbles, The Housing and Financial Crisis Bubbles, and I can tell Janet Yellen asset prices including stock prices are in bubble territory.
When I look at how easily the Google's, Tesla, Netflix, Priceline's, Twitter, Amazons of the world have reached these lofty price levels over the last five years the Fed has set the stage for massive price depreciation in stocks and people's portfolios once the interventionist Fed policy is taken away - these are not normal market conditions Janet Yellen!
Accordingly you may have an economic background, and have economic and financial models that lead you to believe that stocks are not in bubble territory Janet, but from a trading perspective, someone with actual experience in buying and selling financial assets over the last fifteen years - there is no true price discovery, i.e., instruments don't trade in a two-sided pricing discovery process.
It is Risk-On all the time with no consequences yet for the inevitable unintended consequences of such behavior - the inevitable crash when conditions get unsustainable under any intervention policy.
Now or Later - That is the Question!
This is the real danger to forestall the cessation of intervention for longer, to delay the stepping away, to the point where asset prices get so elevated, that even with an $85 Billion Monthly Asset Purchases, the decline and losses from such elevated levels, means that stocks just crash right through levels in humongous freefalls.
This is the scenario where losses exacerbated by out of this world leverage, cause that 85 Billion to be nothing but a mere entry point for more shorting, as the Market Crash takes hold, and stocks freefall dropping chunks of losses along the way that has fund managers selling without Algos - just get this stuff out the door at any price - this is where we were in 2007 with 15 Billion Quarterly Write-Downs by the Banks!
Hence you can pay now or pay later, but you're going to pay Janet! So until you get some actual market experience, you keep to worrying about how to create jobs, and let me tell you when there are bubbles in stock prices Janet!
Yes Janet I am smarter than you when it comes to Stock Market Bubbles, and we are currently in a stock market bubble. Consequently when do you want to Pay Janet - it is going to cost you either way, Pay now or Pay Much More Later on down the line!
Courtesy: Global Economic Intersection
IVRCL Ltd in Mining
The mining sector which was a monopoly of Govt sector was opened up during the last ten years or so gradually. IVRCL is currently pursuing opportunities in the Mining sector with keen interest. IVRCL has entered into strategic alliances with reputed mining companies from South Africa, China and Ukraine and experienced Indian companies as well to jointly pursue both open cast and underground mining opportunities unfolding in India in Coal, Copper, Zinc and Gold mining sectors.
Open Cast Projects Completed:
IVRCL has successfully executed a contract for Over Burden removal of over 2 million cu m. for Singareni Collieries.
- It is the first work under mining
Successfully completed the project of Removal of OB from A2, A3 patch of Rajmahal Area, ECL, for a OB removal of 3.1 million cum in 8 months and value of work executed was Rs. 2300 Lacs
- Achieved a peak progress of 5.3 LBCM during May 2012
- Completed the work within 8 months of time by executing 30.70 LBCM of OB removal
Open Cast Projects under execution:
Loading & Hauling of Rock from Malanjkhand Open Cast Mine, Malanjkhand, Balaghat, M.P, value of work under execution is Rs. 4536 Lacs and quantity is 24 LBCM
Underground Mining Project in pipe line:
Development of Malanjkhand project for 5MTPA production through underground Mine
The LoA was issued on 8th Nov 2011, subjected to clearances of Environment & Forest and the same was got through on 17.06.2013. Now the work will start within a couple of weeks..
The total value of the Project is Rs. 117612 Lakhs
Irrespective of hard strata, terrain conditions the work is in execution as per schedule
Brief Scope of work:
Further IVRCL led consortium has been awarded with the work of Development of Malanjkhand underground mine of 5 MTPA by M/s Hindustan Copper Ltd., which is one of the biggest underground projects involving sinking of 4 no. of vertical shaft to a depth of approx. 700m each, drivage of 2 no. of declines and its development & supply of winders, ventilation system, crushers & supply of other electro mechanical items with installation.
Cement demand set to improve in most parts of India: Survey
|Photo: Forbes India|
MUMBAI, DEC 6: After a period of slowdown, demand for cement is expected to pick up mainly because of the increase in Government spends in the infrastructure sector, a survey by ICICI Securities has found.
The demand for the key construction material has improved in states like Punjab, Haryana, Uttar Pradesh, Bihar and Maharashtra, while its prices have increased by Rs 30-40 a bag in the past two months, the leading brokerage said in a statement here today.
Others like Rajasthan, Gujarat, West Bengal and Karnataka are showing initial signs of demand improvement, while requirement in Andhra Pradesh and Tamil Nadu is likely to remain weak, it said.
“We continue to maintain our positive stance on the sector and expect demand to pick up on the back of healthy rural housing demand due to a good monsoon, gradual pick up in Government infrastructure spends and low base of the past year,” the financial services firm said.
In November, cement despatches grew by around 3-4 per cent y-o-y while they declined by 7-8 per cent on month-on-month basis to around 18.5 MT, impacted by sand mining ban in Rajasthan (partially lifted on Nov 26), cyclones in Andhra Pradesh and Odisha, Assembly elections in Rajasthan, Madhya Pradesh, Chhattisgarh and Delhi and festive season, it said.
The year-to-date demand growth in FY14 is likely to be at 3-4 per cent YoY led by east and central regions, where expansion is expected to be 6-8 per cent. North region has likely grown by 2-3 per cent, while west and south are expected to have broadly flat demand.
Cement prices have been hiked by Rs 10-15 a bag (50kg) in north, central and west regions effective December 2, while they were broadly flat in south and east. On an average pan-India prices increased by 1-2 per cent MoM, while remained flat YoY to Rs 284 a bag in November.
Friday, December 06, 2013
WINNING STROKES: THINK DIFFERENT
|Please Click on the Chart to Expand|
IVRCL Ltd today touched Rs.17.35, before closing at Rs.16.50. The mining sector which was a monopoly of Govt sector was opened up during the last ten years or so gradually. IVRCL is currently pursuing opportunities in the Mining sector with keen interest. IVRCL has entered into strategic alliances with reputed mining companies from South Africa, China and Ukraine and experienced Indian companies as well to jointly pursue both open cast and underground mining opportunities unfolding in India in Coal, Copper, Zinc and Gold mining sectors. Moreover, CNBC-Awaaz quoting unnamed sources reports, that the companies in highway projects may get 2-year exemption to repay their debt. This will help the companies like IVRCL and Reliance Infrastructure.
Punj Lloyd Ltd which was recommended around Rs.26-27 today touched Rs.29.35, the scrip should reach its first target of Rs.31, within a short time.
BGR Energy Ltd today touched Rs.130.65 which is very near the 2nd target of Rs.131. The company already reached its first target of Rs.126. It is better to book some profits in the counter and enter safe bets like Reliance Power Ltd, which was recommended around Rs.73.50-74. Reliance Power today touched Rs.75.65, before closing at Rs.74.80. Moreover, Reliance Power has also been recommended by two well known marketmen, with an identical target of Rs.81, however, I feel it could touch Rs.102-103 by March, 2013.
Allahabad Bank Ltd which was asked to be bought on all declines today touched Rs.93.75, before closing at Rs.93.55. The scrip will give decent return within the next few months time frame as the government starts to decrease the Repo rates and construction activities pick up steam.
Note: I am looking for partners, who can invest around Rs.3-5 lakhs in the share / equity trading with a back up fund of 30-40% in case of emergency clearance of debit in the trading account. Without back-up funds it becomes a bit risky to play in the markets. Anyway, the profits could be shared in a ratio. The markets are moving up and hence this is the best time to cover up any of your losses or make superb gains on your investments.
Construction in India - Key Trends and Opportunities to 2017
The Indian construction industry increased in value at a CAGR of 15.10% during the review period. This growth was supported by the country’s expanding economy, increased government spending on public infrastructure, high urbanization and a supportive foreign direct investment (FDI) system.
Construction industry growth is expected to remain strong over the forecast period, as a result of the government’s commitment to improving the country’s infrastructure. The infrastructure, industrial and commercial construction markets collectively accounted for 74.2% of the total Indian construction industry in 2012. Consequently, the contribution of these three markets will be significant to the overall Indian construction industry growth over the forecast period.
The Indian construction industry’s output is expected to record a CAGR of 15.45% over the forecast period. The general outlook for construction activity during the five-year forecast period is positive. Construction activity in the residential market will be driven by demand side factors, such as the growth in nuclear families and the rising urbanization rate, as well as government support and state investment in affordable housing schemes.
Power companies like Tata Power, Adani Power, Reliance Power and others breathe easy as government plans loan recast
NEW DELHI, Dec 2, 2013: A big relief is on the cards for power companies such as Tata Power, Adani Power, Reliance Power and Essar Power whose plants are in trouble, and their lenders who are worried about loans worth Rs 2 lakh crore to the sector. The government is working out a plan to restructure the loans, extend repayment deadlines by three years and waive penalties, officials said.
The private sector, which has invested heavily in recent years and accelerated capacity addition, is struggling with fuel scarcity and distribution bottlenecks. Large capacities of plants based on coal or gas are stranded because of fuel scarcity while many are facing delays in clearances.
The proposal aims to help plants with 65,000-70000 mw capacity that have suffered in the last four years due to reasons like shortage of fuel, lack of regulatory clearances and rupee depreciation. The rejig was necessary to prevent the loans from becoming non performing assets (NPAs) till the plants generate regular cash flow, officials said.
Power minister Jyotiraditya Scindia is likely to meet finance minister P Chidambaram next week to discuss the proposal. "Private power generating companies have come under severe stress over the past four years due to conditions outside their control. Domestic coal and gas shortage, price volatility in imported coal, weak distribution utilities, problems in land acquisition and regulatory clearances, higher interest burden and forex exposure have adversely affected thermal plants. There is a need to restructure loans of these companies to prevent the plants from becoming NPAs," the official said.
The proposal includes shifting commissioning deadlines of projects, particularly gas-based plants, whose debt has already been restructured. Power secretary PK Sinha confirmed the development. "We are working one such proposal along with banks, the finance ministry and other ministries," he told ET.
Thermal plants in the country have been operating at record low level at about 63%. Gas-based power plants are running at less than 25% capacity and around 8,000 mw is idling for want of gas allocation.
Sinha, however, said the country's power deficit has come down to record 3.5% in October as against 8.9% in the same month previous year. He said this was because of improved hydropower generation, less demand due to favourable weather conditions, high capacity addition and policy initiatives taken by the government.
Over the past few months, the government has taken many decisions in favour of power companies like directing Coal India to supply coal to power firms for 20 year, and passing cost of imported coal to consumers, approving compensatory tariff to Tata Power and Adani Power and bailing out state distribution companies.
The measures are expected to benefit power companies in the next 18-20 months.
Thursday, December 05, 2013
IVRCL Ltd: Steady Upmove Ahead
The scrip of IVRCL Ltd (Rs.14.75) is above its 21, 50, 100 DEMA/ DSMAs and Golden Cross had already taken place. It is also above its 150 DEMA. The scrip moved up yesterday with good volumes. Until Rs.16.20, there is hardly any HURDLE for the scrip to move up, if the market conditions remain steady. Still you can buy in Bulk and wait for the share price to race past Rs.20.
There were news in a section of the media that, stocks belonging to the capital goods, infrastructure and power sectors are likely to benefit from new policies to kickstart growth if the Narendra Modi-led BJP emerges victorious in the 2014 general elections as the market moves towards taking specific bets on sectors and stocks.
Business groups considered close to the Gujarat chief minister such as the Ahmedabad-based Adani Group, and the Mumbai based Reliance Group and a number of infra and power companies are among those believed to be benefit from what the market sees as Narendra Modi's emphasis on job creation and infrastructure revival. CLICK HERE.
Wednesday, December 04, 2013
WINNING STROKES: THINK DIFFERENT
IVRCL Ltd as expected moved to Rs.14.90 before closing at Rs.14.33. Even Punj Lloyd Ltd moved to Rs.28.70, before falling at the end of the day to close at Rs.27.70. These are the opportunities to pick up these blue chip counters, especially when Rangarajan-headed panel has, in principle, agreed on a formula that will allow road developers in stressed projects to backend majority of their annual premium payable to the government. The government is close to finalizing a bailout package for road developers. Meanwhile, the RBI has allowed holding companies to raise funds through external commercial borrowings under automatic and approval routes, as long as they are for special purpose vehicles formed for an infrastructure project. This is positive for all the infrastructure counters. Besides, a Mumbai (Bombay) based financial weekly writes: Market experts believe that a prospective BJP government will announce policies to lift economic growth and revive stalled projects, especially those in the power sector. In some of his speeches, Narendra Modi has criticized the UPA government for not doing enough to revive stalled power projects, while in others he has called for more investment to revive job creation. Brokers and market experts are speculating about the kind of policies and the sectors that his government will emphasise in their economic plan. Infrastructure, power and capital goods are obvious focus areas. Capital goods stocks are closely linked to changes in investment cycle and signs that a prospective Modi government may focus on them are being regarded favourably. Modi has spoken a lot about reviving stalled projects and brokers are betting on power and infrastructure projects such as roads which are awaiting various clearances. "Infrastructure is the sector which could see immediate change in sentiment whereas capital goods the other sector reeling under lack of confidence will gain in the short term," say Daljeet Kohli, head of research at IndiaNivesh Securities. "An overwhelmingly large number of analysts and investment strategists are now pinning hopes on positive outcome of this political event," he added. It is all raining positives for the infrastructure.
BGR Energy Ltd touched the 2nd target of Rs.126 today, the scrip was repeatedly recommended along with BHEL, around Rs.110-112 and earlier at Rs.117. The outlook for the power sector is improving hence, it is necessary to go full hog in direct power companies, like Reliance Power Ltd (Rs.73.10), NTPC Ltd (Rs.145.45), Jaiprakash Power Ventures Limited (Rs.19.85), etc. My recommended Reliance Power Ltd today rose to Rs.74.60, intra-day. In case of Reliance Power Ltd, GOLDEN CROSS-OVER has already taken place, and it is only time that the scrip would move up to Rs.81-82-87. Meanwhile, there are media reports, that a big relief is on the cards for power companies such as Tata Power, Adani Power, Reliance Power and Essar Power whose plants are in trouble, and their lenders who are worried about loans worth Rs 2 lakh crore to the sector. The government is working out a plan to restructure the loans, extend repayment deadlines by three years and waive penalties, officials said. CLICK HERE.
AFTER MARKET OPENING CHART CHECK
Today, since the morning the Nifty_Spot is able to hold the support zone of 6170-6180 ranges, which gives much satisfaction to the BULLS. In case of Nifty_Futures, for Wednesday, December 4, 2013, the trend (THIS PART IS FOR THE PAID SERVICE MEMBERS ONLY).
Index Range (December Future)
Range: XXX - XXX
Resistance: XXX – XXX - XX
Support: XXX – XXX - XXX
Today's Call: Buy Reliance Power Ltd at Rs.73.65, T--Rs.81-82, SL--Rs.67. Since most of the stocks of power companies are moving on renewed optimism on the back of India's improving GDP growth numbers, hence, one can remain invested in this sector. This call was given today to the Paid Service members and to all those who are trading with my recommended brokerage houses.
- INFRASTRUCTURE: RBI has allowed holding companies to raise funds through external commercial borrowings under automatic and approval routes, as long as they are for special purpose vehicles formed for an infrastructure project. This is positive for all the infrastructure counters.
- MINING: The steel ministry has moved the SC seeking directions to expedite resumption of iron ore mining in Karnataka citing "acute exigency" of the RM for the iron and steel industry.
- TELECOM: The EGoM decided that the government will put on block 403 Mhz of spectrum in the 1,800 Mhz bandwidth for the upcoming auction scheduled for January.
- AMTEK AUTO: Has increased stake in JMT Auto Ltd to 71.73% from 62.54%.
- BOB: Approved issue shares aggregating to 5.50 bln rupees to the govt on preferential basis.
- BHEL: The government is currently not looking at selling stake in the company to meet its divestment target for the current financial year.
- CAIRN INDIA: Company aims to double oil output to 400,000 barrels per day.
- GMR INFRA: Arm GMR Energy will sell Emco Energy, which has a 600 MW power plant in Maharashtra, in its effort to reduce debt.
- IOC: An environment ministry panel has approved the company's proposal of setting up a liquefied natural gas terminal at Ennore in Tamil Nadu.
- LARSEN & TOUBRO: Company sold 300,000 shares of L&T FINANCE HOLDINGS in the open market for 22.57 mln rupees on Monday.
- MAHINDRA HOLIDAYS: Company divested stake in two Austrian arms on Nov 29.
- NTPC: Public issue of tax-free bonds was subscribed 3.3 times on first day of launch as company got bids worth 33.10 bln rupees against target of 10 bln rupees. Company hopes its captive coal output would reach 100 mln tn as soon as its 10 coal blocks start operations.
- RCOM: Has increased third generation internet mobile rates by 26% and reduced benefit on internet packages by up to 60%.
- SCI: Has won a long-term shipping contract from PETRONET LNG worth more than $200 mln.
- SYNDICATE BANK: Has approved issue of shares aggregating 2 bln rupees to the government on preferential basis.
- TATA MOTORS: Will invest over 3 bln rupees in the National Automotive Innovation campus as part of its commitment for long term research and development in the UK. Co's UK-based subsidiary Jaguar Land Rover sold 6,047 vehicles in the US in November, up 37% on year.
- TITAN: To start selling helmets under the Fastrack brand priced at 1,500-3,500 rupees.
- ORIENT BELL: Has tied up with Disney Consumer Products India to launch the latter's 'Disney' and 'Marvel' branded tiles in India.
RBI allows companies to raise ECBs for project use in special purpose vehicles
[Editor: This is a very good and well thought-out move by the RBI, to shore up the fundamentals of the Indian infrastructure sector; especially at a time when the INR has started to stabilized against the USD. Foreign Loans are quite cheap as compared to the domestic ones and if this route is judiciously employed, we could could see a dramatic change in the fundamentals of the companies catering to the infrastructure space]
However, RBI has laid down few conditions to be followed and these modifications to the ECB guidelines will come into force with immediate effect. RBI said that the business activity of the SPV should be in the infrastructure sector. Besides that the infrastructure project is required to be implemented by the SPV established exclusively for implementing the project.
RBI also said that the ECB proceeds should be utilized either for fresh capital expenditure (capex) or for refinancing of existing rupee loans under the approval route availed of from the domestic banking system for capex as per the extant norms on refinancing.
“The ECB for SPV can be raised up to 3 years after the commercial operations date of the SPV,” said RBI.
According to RBI the SPV should give an undertaking that no other method of funding, such as, trade credit (if for import of capital goods), etc. will be utilized for that portion of fresh capital expenditure financed through ECB proceeds. Besides that the ECB proceeds should be kept in a separate escrow account as per the norms on parking of ECB proceeds pending utilization for permissible end-uses and use of such proceeds should be strictly monitored by banks for permissible uses, said RBI.
RBI also said that in case of holding companies that come under the Core Investment Company (CIC) regulatory framework of RBI, there are additional terms and conditions for raising ECB for project use in SPVs. According to RBI the ECB availed is within the ceiling of leverage stipulated for CICs. This means their outside liabilities including ECB cannot be more than 2.5 times of their adjusted net worth as on the date of the last audited balance sheet and beside that in case of CICs with asset size below Rs 100 crore, the ECB availed of should be on fully hedged basis.
Courtesy: The Business Standard
Construction company resumes works after 14 months
|30-MW Rahughat Hydropower Project|
The construction company—IVRCL has returned to work from this week.The company had stopped work demanding compensation from the Nepal Electricity Authority (NEA) for the period it could not carry out works.
Assistant Administrative Officer of NEA Rahughat Project, Kashiraj Dahal, said that the construction company has started preliminary works of the project.
Before this, discussion was held between the company and NEA time and again about compensation.
According to the project, the company has started works without pre-condition even if discussion was held on the issue of compensation frequently.
The NEA had made agreement with an Indian construction company in 2010 to carry out works on the 32 MW-capacity-project.