Thank you Keyser! Apparently DL was not able to secure any 9W inventory for any dates (it always came as waitlisted and that cannot be ticketed). My primary reason for having 9W on same itinerary was to not have baggage policy issues since 9W does not honor international baggage policies when it is separately ticketed.
I guess I'll need to pay the $150 or Rs.200/kg charge for additional luggage + the ticket rates (which would have been free if it was in same skymiles itinerary).
Btw, DL has terminated skymiles agreement with 9W and IT effective April-15-2012 and hard-stop on Oct-15-2012 (skymiles can only be redeemed on 9W until Oct-15 per DL Rep). So 9W possibly joining Skyteam is probably off the books now.