Changes may be underway for Yes Bank. Mint has learnt that Netherlands-based Rabobank International plans to sell off its 15.9% stake in Yes Bank. One reason for the possible sale is that Rabobank may want to open a branch of its own here in India. Under RBI rules, foreign banks can’t set up shop locally if they own stake in a local bank.
Meanwhile the soaring cost of sprucing up Delhi’s airport has the civil aviation ministry worried. It’s now demanding the airport’s operators explain just how the price tag for the first phase of modernization more than doubled the original projection. Costs of the project shot up to Rs 12,700 crore from the estimate of Rs 5,900 crore.
In related news the civil aviation ministry now wants the operators of Mumbai’s airport to give it regular updates on expenditure. The first phase of modernization in Mumbai is supposed to be done by 2012 and cost Rs9,800 crore. Airport modernization costs affect passengers directly because they pay for part of it, meaning higher user fees.
Thursday brought more clashes on trade as India said it was opposed to an American demand for developing countries to open their markets, part of the Doha round of talks. But India says the new demand cannot be part of those negotiations. The US demand for more market access invokes something called sectorals, under which countries agree to make large cuts in duties in some sectors of the economy.