While part of this phenomenal increase in the circular debt represents an increase in installed capacity of the system, a large part represents the World Bank's ideological and quixotic tilting at the
administered price windmills.
The government
administered price has increased the procurement of ethanol by Public Sector OMCs from 38 crore litre in year 2013-14 to estimated 140 crore litre in 2017-18.
MPS is measured under the AA by multiplying the gap between the current year "applied
administered price" (AAP) and a "fixed external reference price" (FERP) by the "quantity of production eligible to receive the applied
administered price" (Annex 3 of the AA).
Administered price inflation excluding petrol remained elevated at 8.4 per cent in the second half of 2015, from an average of 6.5 per centin the first half of the year.
A senior power department official said the Union Petroleum Ministry has made it clear that
administered price gas cannot be made available to Bawana power plant for the next two years.
Correspondingly, an
administered price cap has to be used as a basis for settlements.
No
administered price system of this complexity can accurately communicate real-world supply conditions.
"In the context of mergers and acquisitions, what is the price that would have to be paid if the acquiring company has to acquire spectrum given to a company at an
administered price, which is Rs 1,658 crore, that's one decision that has been taken," Sibal said.
MUSCAT: Producers of animal feed, including poultry feed in the country are eagerly waiting for a government decision on subsidy, in view of
administered price for these products.
Additional adverse effects stemmed from
administered price dynamics and from the unfavourable influences on agri-food prices of adverse shocks on specific domestic and international markets.