JOIN USThe slowdown in the economy had made it inevitable for the Centre to resort to a hike in diesel prices and bring in foreign direct investment in multi-brand retail, said Union Minister of Micro, Small and Medium Enterprises Vayalar Ravi.
Ravi, like other Congress ministers who have been asked by the party to visit different states to give a clarification on the coalgate, told reporters here that these were very tough decisions taken by the government.
He said the poor economic situation, besides the burgeoning Rs 1.30 lakh crore diesel subsidy and welfare measures like the MNREGA, had “compelled” the UPA to make bold moves. “The governmet is under tremendous pressure and wants to sustain the financial system,” he added.
Ravi said his party had taken cognizance of the objections raised by the allies, including the Trinamool Congress which had set a deadline for the rollback on the two decisions.
The Congress leader said FDI in retail would not impact medium and small retailers in the country and argued that big retailers like Reliance had already made inroad in cities like Bangalore and Delhi.
On the coalgate, Ravi said the losses quoted by the Comptroller and Auditor General were “notional”. The issue should have been discussed in Parliament, he said.