Power is an ESSENTIAL COMMODITY and the government will never allow anyone to do PROFITERRING in it.
Have you come across any GoI-backed list of commodities that are classified as essential?
The best I can find are the ones mentioned in EC Act 1955 but it isn’t helping me make my mind.
My current PoV (quite confused and likely flawed):
- In the longer horizon, is zeroing profits sustainable in a capitalistic economy? Maybe the profits can be capped but is that sustainable either?
- Would the government not be more interested in attacking at B2C side of the value chain than the B2B side?
- I am assuming water is essential (really need the official list of essential commodities). GoI does allow profiteering here (even GoI likely makes it). IRCTC procures water from Ion Ex etc, and then resells it.
- This could be an exaggeration: If electricity is essential, why would housing not be essential? Can’t run electricity without a house. The government does admit that there is a cartel of steel/cement. If housing is essential and GoI admits cartelization, isn’t the entire value chain’s profit under threat? Will the government actually limit the entire value chain? This makes me again refer #1 again - “is limiting/zeroing” profits sustainable?
Haven’t been able to make up my mind on this.
Disc: Exited. But I might re-enter when valuation makes me comfortable