Govt rolls back decision to hike LPG price

Govt rolls back decision to hike LPG price

Wednesday, November 24, 2004 (New Delhi):

Yielding to pressure from the Left, the government today rolled back its decision to hike LPG price by Rs 5 per cylinder every month.

"It has been decided by Cabinet Committee on Economic Affairs that the previous decision to raise LPG price by Rs 5 every month stands rescinded," Petroleum Minister Mani Shankar Aiyar told reporters.

The decision comes hours after the Left parties asked the government to reduce price of LPG at the fourth UPA Government-Left Coordination Committee meeting today.

Earlier, the government had on November 4 decided to raise LPG price by Rs 20 per cylinder and announced a Rs 5 per cylinder hike in price every month to cover for the steep hike in cost of crude oil.

Left's demands

The Left parties today asked the government to reduce prices of LPG and diesel and restore the 9.5 per cent interest rate on the Employees Provident Fund.

The Left also pushed the review of certain provisions of the Electricity Act, 2003 and a proposed amendment to the Patents Act during the meeting.

Prime Minister Manmohan Singh chaired the two-and-half hour meeting, which was attended by UPA Chairperson Sonia Gandhi, and Defence Minister Pranab Mukherjee.

Finance Minister P Chidambaram, CPI (M) General Secretary Harkishan Singh Surjeet and CPI General Secretary A B Bardhan were also present at the meeting.

Clarification on FDI

The meeting also discussed the roadmap to implement notification of Foreign Direct Investment in Indian private sector banks.

Chidambaram had favoured creeping acquisition whereby the foreign banks could pick up 10 per cent annually to stake management control in private sector banks.

Asked about clarifications sought by the four Left parties on FDI in the telecom sector, Chidambaram said the government has received the note and the discussion on the issue is complete.

Pension reforms

On the pension reforms, Chidambaram said the Cabinet has already decided to set up a separate regulator for the sector and a Bill to this effect would be brought in the coming session of Parliament.

On the issue of FDI in pension, he said let the regulator be in place first and then the Government will think about it.

This comes amidst reports that Government might pitch for 100 per cent FDI in pension sector, which would have limited the number of fund managers to begin with.

News From ndtv.com

(With PTI inputs)