News

February 2012

 

International News      

                         

                

Canadian Mining Company Suspends Project in Argentina

Canadian mining company Osisko has suspended a gold mining project in Argentina after protests by locals. The company said it would put its operation in north-western La Rioja province on hold if it did not get the backing of the local population. Hundreds of people protested at the Canadian Embassy in Buenos Aires last week, saying that the Famatina project would pollute the environment, even though the company at the centre of the controversy has assured of conducting environmentally responsible exploration. Local residents, supported by environmental groups such as Greenpeace, had been holding a series of protests against the project. The protesters say mining of the Famatina Mountain would require a million litres of water a day and the use of cyanide to extract precious metals.

 

Davos meet concluded
India today assured global CEOs during the Davos summit which kicked off on January 25, 2012 that its reforms agenda is well on course and the decision to put on hold FDI in multi-brand retail is “just a pause”, forced by compulsions of coalition politics. A firm assurance in this regard was given by Commerce and Industry Minister Anand Sharma when he met top management functionaries of global retail chains Wal-Mart and the Metro Group on the sidelines of the World Economic Forum meeting here. David Cameron tackled EU leaders head-on last night, warning that the Euro is doomed to failure unless they take urgent action and declaring: ‘Tinkering simply isn’t going to cut it anymore.’ The Prime Minister said the Euro lacked all the features of a successful currency, bluntly telling Angela Merkel that Germany must transfer billions to debt-stricken Euro zone nations if she wants it to survive. Mr. Cameron’s tone angered officials from France and Germany, coming just weeks after he vetoed their plans for a new EU-wide treaty to create a fiscal union. Speaking to international leaders and business chiefs at the World Economic Forum in Davos, Switzerland, he poured scorn on Franco-German proposals for a new ‘Tobin tax’ on financial transactions as ‘quite simply madness’. Instead, he said EU leaders should be concentrating on providing real cash for their currently non-existent bailout fund, ensuring creaking banks have enough money to survive and sorting out the debt disaster in Greece.



Pakistan Has No Hidden Agenda in Afghanistan – Khar

Speaking at a news conference in Kabul with her Afghan counterpart, Pakistan’s foreign minister, Hina Rabbani Khar, said that her country had no hidden agenda in Afghanistan. Her statement was in response to a leaked secret NATO report on Islamabad’s links to the Afghan Taliban. The report stated that the Taliban were helped by Pakistani security services, and that they remained defiant with wide support among the Afghan people. The report, based on material from 27,000 interrogations with more than 4,000 captured Taliban, al-Qaeda and other foreign fighters and civilians, noted that “Pakistan’s manipulation of the Taliban senior leadership continues unabatedly, and that Pakistan is aware of the locations of senior Taliban leaders. It further added that “senior Taliban representatives, such as Nasiruddin Haqqani, maintain residences in the immediate vicinity of ISI headquarters in Islamabad”. The report also depicts the depth of continuing support among the Afghan population for the Taliban.
 

 

Romney Scores Big Win in Florida
US presidential hopeful Mitt Romney won a resounding victory in the Republican primary election in Florida, according to official results. Mr Romney polled 46 percent, but rival Newt Gingrich, who only managed 32 percent, says he has no intention of dropping out. Florida’s primary was the biggest of the 2012 election season so far and saw a bitter TV ad battle between the men hoping to take on Barack Obama. Exit polls indicated the economy was the key issue for a majority of voters. The data suggested Mr Romney led his main rival on a host of issues – including likely handling of the economy. The exit polls also suggested he appealed to a broad range of Florida Republican voters, including the state’s crucial Hispanic population. A victory for Mr Romney in the Sunshine State gives him his second win, after the New Hampshire primary, and sees him claim all of Florida’s 50 nominating delegates. A total of 1,144 delegates are needed for a candidate to win the Republican nomination. Mr Romney, 64, has been the front-runner for much of the race, but was thrashed by his rival in South Carolina’s primary earlier last month. A series of polls has indicated he stands the best chance of beating Barack Obama.

 

Tensions Rise over Falkland Islands
Even after nearly 30 years since British and Argentinean troops fought over the Falkland Islands, politicians from both countries are ratcheting up their rhetoric over the British-controlled territory. The battle comes ahead of Prince William’s scheduled Royal Air Force tour of duty in the region next month. The move has drawn more attention to the islands at a time when Argentinean officials are increasingly criticizing the British presence in the area. The islands have been under British rule since 1833. Argentina invaded the Falklands in 1982, prompting a war in which more than 600 Argentinean and 255 British troops died. After the war, the United Kingdom retained control of the islands, which are off Argentina’s coast in the South Atlantic. About 2,500 residents live on the islands, in addition to 1,700 people stationed at the British military’s Mount Pleasant Complex there. Argentinean President Cristina Fernandez de Kirchner recently emphasized her country’s claim to the territory, saying she wanted British officials to enter into talks with Argentina over the islands, which are known as the Malvinas in Argentina.

 

Two Killed in Anti-Wade Protests in Senegal
Two people have been killed in the Senegalese capital during a demonstration against President Abdoulaye Wade’s re-election bid. Police and thousands of opposition supporters clashed in the centre of the city. Earlier, two people were shot dead during protests in a northern town after a court ruled that Mr Wade’s third-term election bid was legal. Elections in the West African country – often held up as one of Africa’s model democracies – are due on February 26. Senegal’s constitution has a two-term limit but the constitutional court has ruled this does not include Mr Wade’s first term, which began before the clause was adopted. At the same time as allowing Mr Wade to stand, the court ruled singer Youssou N’Dour and two other opposition candidates could not run. There has been international criticism of the ruling amid warnings that Senegal’s long-standing record for democracy and political stability could be jeopardised.



Four Men Admit to London Stock Exchange Bomb Plot

Four men, Mohammed Chowdhury, Shah Rahman, Gurukanth Desai and Abdul Miah, have admitted planning to detonate a bomb at the London Stock Exchange, apparently inspired by al-Qaeda. The men, all British nationals from London and Cardiff, were arrested in December 2010 and were set to stand trial at Woolwich Crown Court. They had been inspired by the preaching of the recently-killed radical extremist Anwar Al-Awlaki. It emerged that those who admitted planning to target the London Stock Exchange wanted to send five mail bombs to various targets during the run up to Christmas 2010 and discussed launching a “Mumbai-style” atrocity. The conspiracy was stopped by undercover anti-terror police before firm dates could be set for attacks.

 


Bilateral News      

 

 

India and China Discuss Unresolved Boundary Question
The 15th round of talks between the Special Representatives of India and China on the boundary question – Shri Shivshankar Menon, National Security Advisor and His Excellency, Mr. Dai Binggou, State Councillor – took place in New Delhi on January 16-17, 2012. During this round, the two sides continued their discussions on a framework for a resolution of boundary question. The SRs agreed that they would prepare a joint agreed record for their Governments on the progress made so far in the SR talks on the boundary question. An Agreement on the Establishment of a Working Mechanism on Consultation and Coordination on India-China Border Affairs was signed in the presence of the two SRs. Both sides also discussed other bilateral, regional and global issues. The discussions were wide ranging, productive, forward-looking and marked by a commonality of views on many issues. Making a positive appraisal of the current state of bilateral relations, the SRs noted the importance of regular high-level exchanges and strengthened cooperation across different areas between the two countries. The SRs agreed that there was scope for greater coordination on regional and global issues. They agreed that the next round of SR talks would be held in China.

 

India and Mali Expand and Consolidate Mutually Beneficial Relations
The President of Mali H.E. Mr. Amadou Toumani Toure, accompanied by the first lady Mrs. Toure Lobbo Traore, paid a state visit to India from January 10-13, 2012. This was the first-ever exchange of VVIP visit between India and Mali. Relations between India and Mali have always been close and friendly. India opened its resident mission in Mali in 2009 and Mali reciprocated in 2010. President Toure was accompanied by a high level ministerial and business delegation. During the visit, President Toure met the President of India, who hosted a state banquet in honour of the visiting President. He also held talks with Prime Minister Dr. Manmohan Singh. The discussions between the leaders of the two countries covered various bilateral as also regional and international issues of mutual interest.

 

India Reiterates Continued Support for Infrastructure Development in Myanmar
In an effort to review progress in bilateral cooperation between India and Myanmar since the state visit of His Excellency U Thein Sein, President of Myanmar to India in October 2011, and to discuss regional and international issues of mutual interest, Foreign Minister of the Republic of the Union of Myanmar, Mr. Wunna Maung Lwin paid an official visit to India from January 22-26, 2012. The visiting Minister of Foreign Affairs called on the Prime Minister, and later, held delegation level talks with his Indian counterpart, Mr S.M Krishna. The two sides positively assessed the development in bilateral relations after the landmark state visit of the President of Myanmar. Both sides discussed measures to enhance mutually beneficial cooperation, including in the areas of trade and commerce, security, agriculture, health, culture, science and technology, human resource development and capacity building. The Indian side reiterated its continued support for infrastructure development and cooperation projects for the benefit of the people of Myanmar. The two Foreign Ministers underlined the significance of such projects which could improve connectivity between India and the other countries of South East Asia through Myanmar.

 

India and Thailand Further Multifaceted Bilateral Relationship
Her Excellency Ms Yingluck Shinawatra, Prime Minister of Thailand, paid a state visit to India from January 24-26, 2012 and was Chief Guest for the Republic Day ceremony. This was her first visit to India since assuming office in August 2011. She was accompanied by a high level ministerial delegation, senior officials and a business delegation. The visit took place in the backdrop of 65th anniversary of bilateral diplomatic relations as well as 20 years of India’s enhanced engagement with the ASEAN. During her stay in India, PM Shinawatra called on Honourable President and Vice-President, and held bilateral talks with PM Dr. Manmohan Singh, who hosted an official banquet in her honour. Her other engagements included a meeting with the External Affairs Minister. She also attended a business luncheon meeting hosted jointly by CII/FICCI/ASSOCHAM. The visit of Prime Minister Shinawatra is expected to provide further momentum to our multifaceted bilateral relationship.

 

India and Trinidad and Tobago Enhance Bilateral Ties
H.E. Ms. Kamla Persad Bissessar, Prime Minister of the Republic of Trinidad and Tobago visited India from January 5-14, 2012, at the invitation of Prime Minister Dr. Manmohan Singh. Prime Minister Persad Bissessar was accompanied by her spouse Dr. Gregory Bissessar as also a high level ministerial and business delegation, taking forward the time-tested, strong historical and cultural linkages. Prime Minister Persad Bissessar was the Chief Guest during this year’s Pravasi Bhartiya Divas, which was held in Jaipur from January 7-9, 2012. Besides Delhi and Jaipur, the visiting dignitary also travelled to Jodhpur, Kolkata and Mumbai, and her ancestral village in Buxar district of Bihar. During the visit, discussions between the leaders of the two countries covered various issues in the bilateral interaction between India and Trinidad and Tobago as well as regional and international issues of mutual interest. The visit of the Prime Minister of Trinidad and Tobago, the first such visit in nearly 15 years, provided an opportunity to further consolidate and expand the mutually beneficial relations between the two friendly countries.


India-Saudi Arabia Joint Commission Works towards Cooperation in Investments
The 9th meeting of the India-Saudi Arabia Joint Commission on Technical and Economic Cooperation (JCM) was held in New Delhi on January 4-5, 2012. Shri Pranab Mukherjee, Finance Minister and H. E. Dr. Tawfiq bin Fowzan Al-Rabiah, Minister of Commerce and Industry of the Kingdom of Saudi Arabia co-chaired the JCM. Dr. Al-Rabiah was accompanied by H. E. Mr. Abdullah A. Al Hamoudi, Deputy Minister for Foreign Trade, a 36-member official delegation and a 40-member business delegation. The meeting of JCM took stock of the progress made since the “Riyadh Declaration 2010”, signed during the visit of the Indian Prime Minister to Riyadh. The discussions of the JCM were held in three bilateral sub committees dealing with - economic and commercial, education and science and technology and consular and community affairs. Both sides noted that while the trade between the two countries was growing rapidly, cooperation in investments needed to be raised to make it commensurate with that of bilateral trade. The two sides proposed to work towards this objective. 

 

Corporate News      

 

 

Fortis Buys 85 Percent Stake in Singapore Diagnostic Chain
According to a Reuters report, Fortis Healthcare (India) Ltd is said to have paid US$62.9 million to buy 85 percent in RadLink-Asia Pte Ltd, a Singapore-based diagnostic chain. RadLink operates in diagnostic imaging, molecular imaging, cyclotron and general purpose clinics segments. The acquisition, which was done through Fortis Healthcare International a wholly owned unit of the Indian company, has sent Fortis shares up by nearly 4 percent. RadLink-Asia will provide a diagnostic platform for Fortis Healthcare’s new specialty hospital coming up in Singapore, apart from giving the Indian hospital operator an entry into the premium diagnostics and molecular imaging market there. Fortis Chairman Malvinder Singh said late last year the hospitals operator would raise $175 million in debt to acquire Fortis Healthcare International.

 

France’s Dassault Wins $10.4 Billion Jet Deal with India
After over four years of a fiercely-fought bidding process, French aviation major, Dassault won a $10.4 billion (Rs.52,000 crore) order for 126 fighter jets. The ‘mother of all defence deals’, often regarded as India’s biggest, is perhaps the world’s biggest defence deal as well. The French ousted the Americans, Russians, the Swedes and finally, the European consortium, EADS Cassidian Eurofighter, to emerge the ultimate winner. After a gruelling technical and commercial evaluation spread over a period of five years, India finally selected the French jet Rafale over the Eurofighter Typhoon for a massive MMRCA (Medium Multi-Role Combat Aircraft) programme to supply 126 aircrafts to the Indian Air Force. The process of signing the contract will take four to five months, after the final round of commercial negotiations between the Ministry of Defence (MoD) and Dassault.

 

India Increases Base Import Price of Gold and Silver
According to a Government statement, India, the world’s biggest bullion consumer, has raised the base import price for gold by 5.7 percent to $556 per 10 grams and that of silver by nearly 12 percent to $1,067 per kg. The base price is the rate at which imports are taxed, irrespective of the purchase price, to prevent under-invoicing. The move, which could hit the annual Indian demand of around 800-900 tonnes of gold, is seen as a measure to raise state revenues as the government struggles to meet its fiscal deficit target due to increasing outlays, including subsidies for fuel and food. Last month, India hiked its gold import duty by 90 percent and doubled the tax on silver, sending futures prices higher and hitting shares of jewellers.

 

Maruti Suzuki Reverses Seven Month Drop in Sales
Maruti Suzuki, the country’s largest car-maker, has made a turnaround in monthly sales after seven consecutive months of drop, with the company reporting 5.18 percent rise in sales to 1,15,433 units for January. A statement issued by Maruti Suzuki India (MSI) stated that the company had sold 1,09,743 units in the same month last year. Similarly, MSI’s exports increased by 54.34 percent to 14,386 units in January from 9,321 units in the year-ago period. MSI’s sales had declined for the seventh consecutive month in December 2011 with the firm reporting 7.1 percent fall at 92,161 units. In January this year, the national capital-based company sold 1,01,047 units in the domestic market against 1,00,422 units in January, 2011.

 

SBI May Cut Interest Rates to Boost Credit Expansion
State Bank of India, the country’s largest lender, is likely to cut interest rates in order to boost credit expansion. Though the timeline for the rate cut has not been indicated, it is expected that the bank would take a call on the issue after taking into account the spreads and profitability. The Reserve Bank of India last month reduced the Cash Reserve Ratio (CRR), the portion of deposits that banks are required to keep with the central bank, from 6 percent to 5.5 percent, releasing Rs 32,000 crore of primary liquidity into the system. As regards SBI, the CRR cut would unlock Rs 5,000 crore for the lender. The Government too has recently approved Rs 7,900 crore of fund infusion into the bank to help it expand business without sacrificing the capital adequacy norms. According to estimates, SBI would require additional capital of around Rs. 16,000 crore next year.


“17 CPSU’s to Invest Rs. 140,000 Crore”-PM
17 central public sector undertakings (CPSUs) will invest Rs.140,000 crore in the coming year, said Prime Minister Dr. Manmohan Singh. Addressing a function in New Delhi, Dr. Singh said, “I am extremely happy to learn that 17 of our largest CPSUs have committed to investment plans amounting to Rs.140,000 crore in the coming year. Public investment is particularly needed at a time when the country is facing a difficult global environment, and is looking to domestic drivers of growth,” the Prime Minister said, adding that he would encourage the CPSU’s to also boost capital investments. Investment from CPSUs is mainly concentrated in manufacturing, mining, electricity and services sector. The Prime Minister also stressed that the central public sector enterprises (CPSEs) need to focus on good corporate governance, strategic planning, innovation, research and development (R&D) and greater attention to quality control for staying competitive.

 

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