The Mint Report for 22 December 2009

The Mint Report for 22 December 2009
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First Published: Tue, Dec 22 2009. 10 31 AM IST
Updated: Thu, Dec 24 2009. 12 32 AM IST
Infrastructure company GVK has resumed its efforts to acquire more stake in Bangalore International Airport Limited or BIAL. It is talking to Siemens Project Ventures to pick up either a part or a complete stake in the company. GVK already holds a 29% stake in BIAL, which it acquired in separate deals with Zurich Airport and Larsen and Toubro. Siemens holds a 40% stake and has to remain invested in the project for three years before it can cut that number down to as little as 14%.
A new report suggests there could be good news for private domestic airlines in 2011. Consulting firm Centre for Asia Pacific Aviation says both Jet Airways and SpiceJet could make a full-year profit in 2011. It says Kingfisher airlines will also become profitable in 2011, but only in its domestic operations. But things aren’t as good for Air India. According to the study, the national carrier will continue to post losses in 2011 as it struggles with restructuring itself.
Reliance Industries Limited says it has struck gas. The company claims to have made found gas in its D3 block in the KG basin off India’s east coast. This is its third discovery in the D3 block covers more than 3,000 square kilometres of area. RIL says it is still evaluating the potential of its new discovery.
The company may be bidding for bankrupt firm LyondellBasell, but analysts and bankers say a deal is not likely in 2009. Last week LyondellBasell filed a modified reorganization plan with an American court that will help it streamline its structure and cut its debt when it comes out of bankruptcy protection.
India will get loans worth a total of $850 million from the Asian Development Bank. A $700 million loan will go to Indian Infrastructure Finance Company and another $150 million will go to the traditional khadi fabric industry.
The deputy head of the Planning Commission Montek Singh Ahluwalia said that while India’s food inflation is a concern, it is likely to fall in January. Ahluwalia also said food inflation cannot be tackled through monetary policy. India’s food prices rose nearly 20% in the week ending 5 December.
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First Published: Tue, Dec 22 2009. 10 31 AM IST