Saturday, 14 March 2015

14-mar


Adani's USD 1 billion loan from SBI may not materialize
 

1)      The State Bank of India is planning to turn down a request from Adani Enterprises for a S1 billion loan for its  Australian coal mining ventures.

2)      A preliminary loan deal (MoU) was struck in November 2014 for USD 1 billion loan to build USD 7 billion coal mine in Australia.

3)      Reasons :

                                i.            poor coal prices

                              ii.            lengthy timeline of the $7-billion coal project

                            iii.            Many Queensland (Australia) coal mines are running at a loss

                             iv.            Adani Enterprises’ Australian project has also been hit by political and environmental opposition, amid protests over the potential impact on the Great Barrier Reef

                               v.            Adani Enterprises had more than $11 billion of debt on its balance sheet

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Trade deficit narrows in February
 

1)      India's trade deficit (Export - Import) narrowed to a 17-month low of USD 6.85 billion in February, which was USD 8.3 billion in the same month previous year.

2)      The decline was on the account of over 55 per cent decline in oil imports.

3)      Exports :

                                i.            Exports fell for third straight months by over 15 per cent to USD 21.54 billion. In January the decline was 11.12 per cent.

                              ii.            During the 11 month period April 2014 to February 2015, exports were USD 286.58 billion, short of full year target of USD 340 billion.

4)      Imports :

                                i.            Imports fell by 15.66 percent to USD 28.39 billion.

                              ii.            Oil imports were down over 55 per cent to USD 6.1 billion on back of an over 50 per cent slide in global crude oil prices.

                            iii.            However, Gold imports rose 48 per cent to USD 1.98 billion.

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