Letter #122

Strong power demand (higher than GDP growth in 2 of the past 3 years) and possible enactment of the new Electricity Act in the monsoon session have many investors excited. And if implemented earnestly, it has the potential to change India’s electricity landscape. But… alas, there is always a “But”.

Our ET article today has two broad strokes. One, it deals with the state of the industry as it stands today; how each sub-vertical stacks up on the returns profile. Two, it takes a look at the historical reform attempts starting in 2002 and what went wrong where. It is too large a problem to be left alone and hope a solution emerges. Strong action is called for;

Read here as to what should it entail: https://tinyurl.com/5349dz36

Our previous articles can be found here: https://www.buoyantcap.com/our-memos

Disclaimer:

Information in this letter is not intended to be, nor should it be construed as investment, tax or legal advice, or an offer to sell, or a solicitation of any offer to make investments with Buoyant Capital. Prospective investors should rely solely on the Disclosure Document filed with SEBI. Any description involving investment examples, statistical analysis or investment strategies is provided for illustration purposes only – and will not apply in all situations and may be changed at the discretion of the principal officer. Certain information has been provided and/or based on third-party sources and although believed to be reliable, has not been independently verified; the investment managers make no express warranty as to its completeness or accuracy, nor can it accept responsibility for errors appearing herein