Tata power sells 5% stake in KPC mines; it has also signed an agreement to sell its entire 30% equity stake in the power infrastructure companies associated with KPC. Positive in short to medium term. Tata Power has said it will sell its 5% stake in PT Kaltim Prima Coal for ~$ 250mn. Post stake sale, Tata Power’s stake in PT Kaltim Prima Coal (KPC) will be 25%.The company will sell its stake to Indonesian coal firm Bakrie Group entity. The company has also signed an option agreement to sell its entire 30% equity stake in the power infrastructure companies associated with KPC. The deal values entire 30% stake at ~$1.5bn and the deal will help the company get additional cash as well as to reduce its consolidated debt. We believe this announcement to be positive for Tata Power in short to medium term.
National Economic News
India to become third largest economy by 2030: PwC
India is set to become the third largest economy in the world by 2030, according to PricewaterhouseCoopers (PwC). The rapid rise of the Indian economy with its young workforce would push it up from being the 10th largest economy in 2013 to the third largest by 2030, pushing the UK back into sixth place. China, the world’s second largest economy, is expected to close the gap with America by 2030, while Mexico is predicted to be the 10th largest economy by 2030, above Canada and Italy, both G7 nations.
World Economic News
Global economic recovery could be ‘less robust than expected’: IMF
IMF chief Christine Lagarde has hinted that the International Monetary Fund may be preparing to cut its global growth forecasts as she warned that a pick-up in economic activity could prove “less robust than expected” amid “depressed” levels of investment. The fund suggested that efforts from central banks to accelerate a recovery in the global economy may now be “finding their limit” and urged governments to inject a “booster shot” by increasing investment in areas such as infrastructure, education and health. This month the IMF will publish its latest forecasts for growth, having predicted in April that the global economy will expand by 3.6% this year and 3.9% in 2015.