The Mint Report for 08 November 2010

The Mint Report for 08 November 2010

We begin with Barack Obama, who has said he will welcome India getting a permanent seat in the Security Council. Addressing a joint session of Parliament on Monday evening, Obama said looked forward to seeing reformed U N Security Council that included India. But he also added that with the greater power would come greater obligations. Obama then went on to mention both Iran and Myanmar. Both are countries the US wants India to take a stronger stance against.

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And Obama also spoke about India’s relations with other countries in its neighborhood. During his address to parliament he declared terrorist havens, including those in Pakistan were unacceptable. And earlier in the day, Obama said the US would not intervene in talks between India and Pakistan on Kashmir. Despite those statements, he also added that reducing tensions was in the interests of both countries. Prime Minister Manmohan Singh responded by saying that talks couldn’t be held while a campaign of terror was being waged against India.

Earlier on Monday, Obama and Prime Minister Manmohan Singh announced a series of new agreements and other steps that they say will deepen relations between the two countries. Significantly, the US has lifted restrictions on Americans selling dual-use technologies to Indian organizations like DRDO and ISRO. The two countries have also inked agreements on energy. Other agreements include one on explorations for shale gas resources in India and a deal on weather forecasting.

State Bank of India has posted mixed numbers in the second quarter. On a consolidated basis, its profit fell some 22% to Rs2364 crore. The bank’s net interest income on the other hand, rose a full 45% to Rs8,115 crore. Its net interest margin meanwhile, climbed 87 basis points to 3.30%. The bank said its fall in profit was mostly because of a decision to increase the loan loss provisions. SBI is India largest lender.

Passengers may end up footing more than a quarter of the bill for modernizing the Delhi’s Indira Gandhi International Airport. The consortium running the airport, DIAL, wants to collect Rs1654 crore more as development fee.

Its proposal is now with the airport regulator AERA. At present DIAL is allowed to levy fees to collect one Rs1,827 crore by 2012. AERA could consider extending that deadline to 2015. Modernizing Delhi’s airport has cost some Rs12,710 crore. If AERA accepts Dial’s request passengers will fund 26% of the total cost.