Ahead of Shivir, govt fast tracks reforms agenda
18 Jan 2013 6:51 AM IST
By taking the decision to deregulate the price regime for high-speed diesel a day ahead of ‘Chintan Shivir’, Congress leaders set the tone of the economic resolution of the party on Thursday. According to Congress insiders, the major decision taken by the cabinet is reflective of the spirit of the statement made by Prime Minister Manmohan Singh at the time of introducing 51 foreign direct investment (FDI) in retail.
Gift rapping reform measures with populist initiatives, the government raised the cap on supply of subsidised cooking gas (LPG) to nine cylinders per household from six and virtually deregulated diesel prices allowing ‘small’ hikes over a period of time. Diesel price has been hiked by 40-50 paise a litre per month for retail customers and nearly Rs 11 for bulk consumers. Petrol price has also gone down by 25 paisa per litre. The new prices were implemented from Thursday midnight. LPG and kerosene prices remain unchanged.
Through these decisions, the PM may have managed to steer the focus of the Chintan Shivir back to economic agenda in Jaipur. ‘We have to bite the bullet. If we have to go down, let us go down fighting,’ the prime minister was quoted by sources as having said at the meeting of the cabinet committee of economic affairs. The strong position taken by Manmohan Singh is a repeat of 2008 when he staked the survival of UPA-I government over the civil nuclear deal with the US. Having overcome the opposition’s assault on FDI in retail, the policy makers in the government found the time just ripe to allow second phase of reforms by introducing deregulation of diesel prices though through a sly.
As a Congress leader informed, ‘The party could find it very difficult to run down an economic decision of its government just a day after it has been announced. The Shivir could see a reform non-enthusiast like Digvijay Singh moving a resolution endorsing the government move as it also comes with a LPG bonus for the aam admi.’ Price of diesel was last revised on 14 September when it was hiked by a steep Rs 5.63 per litre. At present, diesel costs Rs 47.15 per litre in Delhi.
Gift rapping reform measures with populist initiatives, the government raised the cap on supply of subsidised cooking gas (LPG) to nine cylinders per household from six and virtually deregulated diesel prices allowing ‘small’ hikes over a period of time. Diesel price has been hiked by 40-50 paise a litre per month for retail customers and nearly Rs 11 for bulk consumers. Petrol price has also gone down by 25 paisa per litre. The new prices were implemented from Thursday midnight. LPG and kerosene prices remain unchanged.
Through these decisions, the PM may have managed to steer the focus of the Chintan Shivir back to economic agenda in Jaipur. ‘We have to bite the bullet. If we have to go down, let us go down fighting,’ the prime minister was quoted by sources as having said at the meeting of the cabinet committee of economic affairs. The strong position taken by Manmohan Singh is a repeat of 2008 when he staked the survival of UPA-I government over the civil nuclear deal with the US. Having overcome the opposition’s assault on FDI in retail, the policy makers in the government found the time just ripe to allow second phase of reforms by introducing deregulation of diesel prices though through a sly.
As a Congress leader informed, ‘The party could find it very difficult to run down an economic decision of its government just a day after it has been announced. The Shivir could see a reform non-enthusiast like Digvijay Singh moving a resolution endorsing the government move as it also comes with a LPG bonus for the aam admi.’ Price of diesel was last revised on 14 September when it was hiked by a steep Rs 5.63 per litre. At present, diesel costs Rs 47.15 per litre in Delhi.
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