Wednesday, October 13, 2010

India gets highest number of votes for UNSC seats in 5 years

UNITED NATIONS: With 187 votes in its bag, India has received the highest number of votes for getting into the United Nations Security Council in the past five years, according to Indian diplomat.

Hardeep Singh Puri, India's envoy to the UN, described this as a "ringing endorsement."

"This is the highest vote that any country has got in the last five years," he told PTI. "Now that's saying a lot."

Out of the 190 countries that voted, India received 187 votes.

After the vote in the General Assembly last morning, the diplomats of the Indian mission to the UN celebrated by openning a couple of bottles of champagne and serving a lunch of spicy Chinese food.

India, which is a founding member of the UN is returning to the Security Council after a gap of 19 years.

It has been on the Council six times before--having last served in 1992.

Other countries to be elected are South Africa, Colombia, Germany and Portugal.

Canada, which was also contending, received the least number of votes and eventually withdrew after the second round of voting.

The five new countries will be replacing Austria, Japan, Mexico, Turkey and Uganda.

Three of the new members are part of the G4 (India, Brazil, Japan and Germany), which want to become permanent members.

After the vote, India made it clear that it would be pushing for change in the next two years as it serves out it term as a non-permanent member.

"Not only are we entering the council but we're entering the council when inter-governmental text based negotiations are underway and those text based negotiations are expected to progress for a final outcome in the next twelve months," Puri said.

The Indian envoy asserted that countries like Brazil and South Africa "are expected to utilise their tenure as non-permanent members in order to facilitate longer-term permanent membership for themselves while their serving this terms."

While India, South Africa, and Colombia were not challenged by any other country from their region, the two seats of the Western European and Others Group were contested between Portugal, Germany and Canada.

Germany made it in the first round of voting with 128 votes--just enough to scrape through, while Canada received the least number of votes and eventually withdrew after the second round of voting.

Puri did not comment on Canada's performance except to draw a parallel between the 1996 vote when India failed to make the cut and was trailing behind the Japan in the election.

"It took us more than a decade to overcome the trauma of our experience in 1996," he said.

"In successive rounds of voting Canada realised that it was not mustering the votes...it did what was honourable... it withdrew... what the impact of that is going to be I really don't know... lets wait and see."

Without answering which countries India voted for, Puri said that New Delhi was happy that Portugal and Germany had joined the Council.

Also present in the General Assembly Hall during the vote was veteran Congressman, Vidya Charan Shukla, who also served as India's Foreign Minister.

Shukla also asserted that the vote today indicated that India enjoyed support for a longer stint on the Council.

"I felt very elated and happy because this will show how strong we are as a candidate for the permanent membership," he told PTI. "The way people voted for us, it strengthens our case for permanent membership."

Responding to Germany's performance, which just made the cut, Shukla said,"Germany is also candidate for permanent membership but this kind of victory weakens their case for permanent membership."

Pointing out that UN member-states know about India's aspiration for permanent membership, Puri noted that the high number of votes indicated widespread support for its presence on the international stage.

"That is a clear and unmistakable signal that India and its role is not only acknowledged but respected by the international community," he said, adding "what is important is that you win the election not by a comfortable margin but by a massive margin."

India will begin serving its two year term in January 2011.

TOI

India's external debt rises to $273.1 billion

MUMBAI: India's external debt rose 4.1 percent or $10.8 billion to $273.1 billion in the first quarter of current fiscal due to a sharp increase in short-term trade credits, commercial borrowings and multilateral government borrowings.

The short-term debt increased by $5.4 billion to $57.8 billion, accounting for 21.2 percent of the total debt, while the long-term debt rose to $215.2 billion at the quarter ended June 30, the Reserve Bank of India (RBI) said in its monthly bulletin.

Almost all the components of external debt registered increase during the first three months of fiscal 2010-11. Commercial borrowings and loans under external assistance (multilateral and bilateral debt) increased by $2.5 billion and $2.3 billion respectively.

The share of commercial borrowings continue to be the highest at 27.3 percent in the total external debt followed by short-term debt (21.2 percent), NRI deposits (17.6 percent) and multilateral debt (16.4 percent).

The valuation effect reflecting the appreciation of the US dollar against other major international currencies and the Indian rupee resulted in a decline of $1.3 billion in India's external debt during the reporting quarter.

"Excluding the valuation effects due to appreciation of US dollar against other major international currencies and the Indian rupee, the increase in external debt worked out to $12.1 billion over the quarter," the RBI said.

TOI

Coal India eyes up to Rs 15,400-cr through IPO, overseas buys

MUMBAI: Coal India Ltd (CIL) which is raising around Rs 15,400-crore through the largest-ever initial public offer (IPO) here, today said it will invest Rs 6,000-crore (USD 1.2-billion) for acquisitions abroad.

"We are looking at acquisitions in the US, Australia and South Africa, for which we will invest Rs 6,000-crore (USD 1.2-billion) this fiscal," its Chairman, Partha Bhattacharyya , told reporters here.

The company is looking at high-value coal mines in the US and it will enhance its investment limit later, he said.

"We will go for washing of coal in a big way. Margin growth will be the dominant focus," he added.

Coal India is entering the capital market on October 18, with a public offer of 631,636,440 shares of Rs 10 each through an offer for sale by the Government at a price-band ranging between Rs 225-245 per equity share. Retail investors and employees will be offered a 5 per cent discount.

Coal India will raise between Rs 14,200-crore and Rs 15,400-crore. After the discount, the amount aggregates to Rs 13,909-crore and Rs 15,151-crore.

Coal India is the largest coal producer with raw coal production of 431.26-million tonnes in fiscal 2010. It is also the largest reserve-holder in the world.

Asked about the company's future outlook, Bhattacharyya said "we expect a 15-16 per cent topline growth in the next two-years."

TOI

Gold up to Rs 19,695, silver breaches Rs 36,000-level

MUMBAI: Gold and silver continued to sparkle at the bullion market here today, touching historic highs on the back of robust buying by stocks and speculators amid a firm global trend.

Silver conquered another milestone, scaling the Rs 36,000 per kg level in a rally driven by strong industrial and investment demand.

Silver ready (.999 fineness) jumped by Rs 455 to Rs 36,190 per kg from Tuesday's closing level of Rs 35,735.

Meanwhile, standard gold (99.5 purity) hardened by Rs 105 to Rs 19,695 per ten grams, as against Rs 19,590 in the previous session. Similarly, pure gold (99.9 purity) shot up by Rs 110 per 10 grams to Rs 19,795 from Rs 19,685 yesterday.

"The yellow metal is soaring because of the festive season and marriage-driven demand," traders said.

In Europe, gold rose to its highest levels as dollar weakness against major currency rivals continued.

Gold was being quoted at $1,357.80 an ounce in early spot market trade, while silver was attracting a rate of USD 23.51 an ounce.

TOI

Sensex's highest surge in 6 months

MUMBAI: The Bombay Stock Exchange benchmark Sensex today jumped by 484 points — the highest rise in the last six months — to close at a fresh 33-month high on sustained capital flows amid firm global cues.

The 30-share barometer rose by 484.54 poins to 20,687.88 points, its best closing level since January 2008.

The wide-based National Stock Exchange index Nifty added 143 points to close at 6,233.90 points.
The market remained in bull orbit as foreign investors bought more shares than they sold for the 29th straight day after reports from China, Japan and Australia signaled that the global economic recovery is strengthening, brokers said.

They added that expectations of strong corporate earnings by leading companies beginning from this week-end also boosted the sentiment.

The market received further support following a firming trend in the Asian region and higher opening in Europe after the US Federal Reserve hinted that it may provide more stimulus measures.

The US central bank said it might provide more stimulus, with Tokyo getting an extra lift from glowing data on private-sector machinery orders.

The oil major and trend setter Reliance Industries spurted by Rs 18.25 to Rs 1,072.15 and second heaviest software exporter Infosys Technologies by Rs 76.30 to Rs 3,151.20. The two carry nearly 23 per cent weightage on the index.

In the 30-BSE index components, 28 stocks closed with gains and NTPC declined, while Cipla Ltd ended at last level.

The Sensex gained 28 per cent from the May 25 low, reaching more close to its all-time high level of 21,206.77 set on January 10, 2008, and become the best performer this year among the world's 10 biggest stock markets, brokers said.

The IT sector index rose the most by 3.15 per cent to 6,249.20 followed by Teck index by 2.72 per cent to 3,850.36. The capital goods index gained by 2.68 per cent to 16,426.36 and realty index by 2.51 per cent to 3,935.64.

As the buying activity spilled over a wide-front, the smallcap index advanced by 1.06 per cent to 10,761.52 and midcap index by 0.99 per cent to 8,436.94.


TOI