The Mint Report for 17 December 2009

The Mint Report for 17 December 2009

New Delhi: India’s microfinance firms have agreed to voluntarily stick to a new credit code. The agreement is part of an effort to ensure the booming microfinance industry doesn’t fall prey to increasing losses in loans. At a meeting in Mumbai earlier this month, microfinanciers agreed to not lend more than Rs50,000 to any single borrower and not letting more the three financiers to lend to a single borrower. India’s microfinance industry has grown some 13 times between 2005 and 2009 and now stands at about Rs11,700 crore.

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Food prices have risen even higher in the first week of December. The wholesale food price index shot up 19.95% for the week ending the 5 December. This is the highest rise in 11 years.

India has said it will offer Rs380 crore in incentives to wind power projects that feed directly into the national electricity grid. India currently ranks number four among countries with grid-connected wind power projects.

Mining giant Rio Tinto has for the first time, sold iron ore from it Australian mines to India. Essar Steel imported 16,000 tonnes of iron ore, which is unusual because Indian companies rarely import iron ore. Traders say the timing of the deal could be connected to problems in Orissa, which is India’s top iron-ore mining producing state.