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Mukesh Ambani seeks early revision of gas prices, urges govt to resolve ‘legacy issues’

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AmbaniReliance Industries on Friday sought an early revision of gas prices and urged the government to quickly resolve what it termed as “legacy issues” over its production-sharing contracts for discovered hydrocarbon.

Pointing out that Reliance Industries was a pioneer in deep-water production of oil and gas, Chairman Mukesh Ambani told shareholders that the company was trying hard to raise output from the challenging areas in the Krishna-Godavari basin, but the returns were below the cost of capital.

“We are constructively engaged with the government to resolve legacy issues in a timely manner with regards to our rights to cost recovery, gas pricing and other issues to create value for the nation and our shareholders.” He also told the 41st annual general meeting at the Birla Matoshree Auditorium here that: “We are hopeful that the government will address this policy issue in the larger interest of attracting investments in the critical E&P business.”

But Ambani also sought to play down the impact of this business on the company’s financials as of now, but said the future had promise. “Reliance had a total earnings before interest and taxes of Rs.31,835 crore last year. The contribution of the E&P business under NELP to this is about Rs.194 crore, which is about 0.6 percent of the company’s EBIT,” he said.

“Though E&P may today be very small in Reliance Industries’ overall portfolio, it has a high latent value creation potential.” In October last year, a meeting of the federal cabinet, presided over by Prime Minister Narendra Modi, had hiked the natural gas prices for normal discoveries $5.61 per unit, from $4.2 per unit, as opposed to the industry demand for at least doubling it to a little over $8 per unit.

But for all new discoveries in ultra-deep-water areas, deep-water areas and the high pressure-high-temperature areas, it said that a premium will be given, but did not spell out further details on how it will be calculated and when it will be awarded.

While shallow-water blocks are at a depth of up to 100-500 metres, deep-water blocks descend to around 1,000 metres. Those at depths beyond 1,500 metres are classified as ultra-deep-water blocks.

These are the areas where Reliance Industries has maximum discoveries. The statement issued after that cabinet meeting said the premium for Reliance Industries for its gas discoveries was under arbitration, and that the company would continue be paid the earlier price of $4.2 per unit.

The arbitration concerns the penalty imposed on the company for allegedly failing to meet output targets from the Reliance-led consortium’s specific offshore blocks. The government wanted the company to make good this shortfall vis-a-vis the terms of contract.

– (IANS)

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Footpath Shopping is not a Taboo anymore: Find out why!

Due to popularity, the average earning of a vendor, at a busy market place is not less than Rs1,500 to Rs4,000 per day

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Footpath Stalls, Pune. Image source: shoppinglanes.com
  • People, irrespective of their economic conditions, shop on footpaths as the items are affordable 
  • Women go for footpath shopping as they can bargain, which is not possible in branded outlets
  • Nowadays, in a busy market, the average earning of a vendor is not less than Rs1,500 to Rs4,000 per day

Patna: There are several myths regarding footpath shopping in India and one of many reasons is that some feel, people belonging to lower strata or economically weaker sections of the society go for it. But with change in mindset, it has now become one of the sought after destinations not only for collegians but also for people from well-to-do families.

People are opting for footpath shopping over malls as they find similar products that match the style or look of the branded items. Not just that, they are affordable too, which makes it popular especially with shopaholics. There is more to this one. What the women love is the feel good thing about bargaining which is a complete no-no in malls.

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Women and college goers, especially girls, seem to be the newest crowd at the footpath shops on Boring Road near the Patna market, Maurya Lok complex. They, just as in the past, are able to find affordable items that they want/need without having to pay a hefty price.

Footpath Shops. Wikimedia Images.
Footpath Shops. Wikimedia Images.

One regular shopper, Maira, said, “You find really attractive material while roaming along the streets. Bargaining is the biggest plus point of street merchandise and sometimes it is adventurous also as there is every possibility of paying more even after a hard bargain.”

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“Sources in the trade revealed that there was a time when a vendor ended his day with just Rs 200 or Rs300 profit. These days, the average earning of a vendor, at a busy market place, is not less than Rs1,500 to Rs4,000 per day,” said a TOI report.

A footwear vendor, Mohammad Parvez, stated “People, irrespective of their economic conditions, shop on footpaths. Most of the buyers are college girls because they can’t afford costly footwear sold in malls and branded shops.” He now makes somewhere between Rs3,000 and Rs4,000 per day.

An street vendor, Chintu who sells artificial jewellery at Patna Market, also claimed that women from all economic strata come to his shop. “My products are affordable and attract women as they can change their jewellery frequently, which is not possible if they buy gold or platinum jewellery,” said Chintu to TOI, whose daily sale is between Rs1500 and Rs2000.

-This article is compiled by a Staff-writer at NewsGram.

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2 responses to “Footpath Shopping is not a Taboo anymore: Find out why!”

  1. Footpath shopping is gaining priority these days. It gives freedom to the buyers of roaming around.

  2. Footpath shopping is not as bad as it looks. In Mumbai, you have Bandra, Colaba street markets which are very famous amongst people and they love to shop on such road markets