India Seeks Coal Mines in Africa; Current Account Deficit Surges

Chandrasekhar Atreya
03 Jan, 2011
New York City

Sensex index in Mumbai closed higher. November exports rose 26.5% to $19 billion but current account deficit surged. India

[R]5:00 PM Mumbai, 8:30 AM New York – Sensex index in Mumbai closed higher. November exports rose 26.5% to $19 billion but current account deficit surged. India’s first half external debt rose 12.8% to $295.8 billion. India is seeking more coal mines in South Africa and Mozambique.[/R]

Stocks in Mumbai traded higher in a light trading supported by a rise in property and automobile sectors. Current account deficit surged from a year ago as imports rise faster than exports. India is seeking more coal mines in South Africa and Mozambique and rupee traded nearly unchanged.

The BSE Sensex added 0.22% or 46.08 to close at 20,555.17. The CNX Nifty on the National Stock Exchange gained 18.20 to 6,152.70.



The rupee stayed unchanged at Rs 45.70 to a dollar in Mumbai today.

November exports increased 26.5% to $18.89 billion and rose 22.3% when measured in rupees. Exports in the eight months to November rose 26.7% in the dollars and 20.5% in rupees. Imports in the month rose 11.2% to $27.80 billion and in the eight months increased 24.0% from a year ago period.

India’s external debt increased 12.8% to $295.8 billion in the first half of the current fiscal year on the rising overseas corporate borrowings.

The long-term debt rose 9.5% to $229.8 billion and the short-term debt rose 25.8% to $66 billion during the six months period ending in September 2010.

India’s current account deficit surged 72% to $15.8 billion in the quarter to September from a year ago period on the rising imports. The Reserve Bank of India data showed the deficit a year ago period was near $9.2 billion.

The RBI plans to carry out two surveys, one on industrial outlook and another on capacity utilization by the manufacturing sector. The central bank has mandated two institutions, Delhi-based Center for Research Planning and Action and Mumbai-based Center for Monitoring India Economy, for the two surveys.

India plans to add 65,000 megawatts of power during the 12th five year plan, Union Power Minister Sushil Kumar Shinde said on Sunday.

“India’s electricity needs will be solved to a large extent in two to three years after the commissioning of various thermal and hydro-electric power plants now under various stages of construction and this is the first time in 60 years after independence that 9,500 megawatts of power will be added in a single year,” Shinde said in Agartala after the opening ceremony of a power plant.

Union Coal Minister Sriprakash Jaiswal is expected to seek more coal mines acquisitions during his upcoming visit on January 5 to South Africa and Mozambique.

National Aluminum Co will bid for two upcoming 4,000 megawatt power plants in Indian states of Orissa and Chhattisgarh, a senior company executive said on Friday.

“We will form a consortium for the bid and preliminary talks have been held with NMDC Ltd and Nayveli Lignite Corp Ltd for a joint venture,” NALCO’s Director of Finance, B.L. Bagra told Dow Jones Newswires.