PC rules out rollback on diesel, FDI decisions

We are not withdrawing any of these decisions, says FM

Discounting Trinamool’s threat of “hard decisions” if the government did not rollback its decision on fuel and multi-brand retail, Finance Minister P Chidambaram on Monday said there will be no rollback on decisions on diesel, LPG and FDI in retail.

The minister also sounded confident that the government did not face any threat from allies. “The Opposition will demand a rollback. As far as I know we are not rolling back any of these decisions,” he told reporters here.

Apart from the Trinamool Congress, the Samajwadi Party and the Bahujan Samaj Party have also hardened their posture on the big-ticket reforms announced by the government last week.

Chidambaram, however, said no body has questioned the soundness of the decision. The finance minister went on to say that there will be more such decisions in the coming weeks to strengthen the economy and spur growth momentum.

In the past few week, the government has taken a number of steps to revive investment in the economy. The decisions range from assuaging investor fears about India’s tax policy to taking steps on fuel pricing and opening up multi-brand retail to foreign players.
“Between now and October 30, the department of revenue, disinvestment and SEBI would decide steps to revitalise economy,” he said.

Chidambaram touched upon a gamut of issues ranging from Goods and Services Tax, Direct Taxes Code, fiscal consolidation and Vodafone tax issue during his interaction with reporters, but dispelled fears that the government was going to bow down under any pressure as far as reform measures were concerned. He also sounded confident on convincing allies on the government’s moves.

Hot words

“There will be a debate and exchange of views. There will be hot words, ultimately we will be able to convince our allies that what we have done is what is necessary and what is imperative to keep the economy going and to protect it from internal and external threats to the economy,” he said.

On capping supply of subsidised LPG cylinder to six per family in a year, he said the government has altered the behaviour of others. People who got their 100 cylinders at subsidised rates may not go beyond 30.