JOIN USCongress nixes allies' demand for rollback
The UPA has refused to accept the demand of its constituents for a partial roll back of government’s decision on diesel price hike and cap on subsidised LPG cylinders.
At a meeting of UPA constituents, presided over by its chairperson Sonia Gandhi here on Thursday, Dravida Munnetra Kazhagam (DMK) vehemently criticised the government’s decision to hike diesel prices and cap on LPG cooking gas, demanding their partial roll back.
According to sources, DMK leader T R Baalu sought an increase in the LPG cylinders’ cap from the current six to nine or 12 for every household, saying economic reforms may be crucial but the fact could not ignored that there were elections ahead and the move to limit the supply of subsidized cooking gas will not go down well with the voters.
The Nationalist Congress Party echoed the DMK demand. However, the Congress remained unmoved. Accepting that decisions taken on LPG cylinders and diesel prices may put burden on people, Prime Minister Manmohan Singh and Finance Minister P Chidambaram defended the government’s decision, arguing that it was unavoidable, sources added.
Despite differences, however, the ruling Congress managed to bring its allies on board. The UPA constituents endorsed the government’s plan to bring more economic reforms in days to come. It was the first meeting of the UPA allies since Trinamool Congress pulled out of the coalition over the government’s decision on FDI in multi-brand retail, diesel price and cap on subsidies on cooking gas.
“We reviewed the situation following the number of decisions announced in the last 10 days. There was general satisfaction that many of the steps taken by the government, although some of them would put a burden on the people, have been welcomed by stakeholders as necessary and unavoidable,” Chidambaram told reporters after the meeting.
The Prime Minister underlined the need for a number of measures that would check volatility of the rupee, ensure flow of investments into India and stimulate domestic investment in the economy, but did not specify them.
He also hinted at government plans to introduce more economic reforms. "The need to do more reforms was discussed. Specific measures will come before the cabinet," he said but did not specify them.
The issue of Sethusamudram project also figured in the meeting. Allies were told that that the ministry of shipping will file an affidavit in the Supreme Court when the matter comes up for hearing.