Coalition compulsions

Sir, - This is with reference to the report ``Rollback at PM's instance: Naik'' (The Hindu, Nov. 22) and the Editorial ``Coalition compulsions'' (Nov. 24).

The country has now a government with a reasonable level of political stability though the coalition is with a large number of political parties. A fall of government at the present juncture is simply unthinkable given the experience of the recent past which witnessed a number of general elections and the fact that an alternative grouping is far from practicable. And even if an alternative grouping does emerge, it also cannot be any better as far as stability is concerned. As such making small concessions to pacify rebellious allies is a worthwhile attempt and could not be found fault with.

The scenario of oil economics in the country both at present and in future is disturbing. With a volatile international oil market which shows no indication of a downward trend in prices of crude or even stabilising at present levels, the possibility of an upward journey of crude prices could be truly disquieting for the country's economy with the oil import bill expected to reach Rs. 80,000 crores in 2000-2001 and oil pool deficit growing at the rate of Rs. 250 crores per month for each one dollar rise in crude prices.

With such a dismaying scenario, the government does not appear to look seriously at possible ways of controlling the situation. Just as in domestic budgets any increase in prices of essential commodities is neutralised by reducing consumption, the Central and State Governments could initiate steps to reduce consumption of petroleum products for which a variety of ways are available. Even some sort of rationing of petrol and diesel could be thought of.

As stated in the Editorial, kerosene continues to be the fuel and means of illumination in poor households in rural areas. As such a restructuring of the subsidy regime with the well-to-do sections of people being excluded from subsidy for cooking gas and even other petroleum products and diverting the amount saved to increase subsidy of kerosene on ration cards to the poor will be a practical way.

In the context of the dependence on import of crude to a great extent, a boost in indigenous production of oil on a war footing is a permanent solution to this problem.

T. R. Anandan,

Coimbatore (TN)

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