The Hindu : Rollback of LPG price hike?

Online edition of India's National Newspaper
Sunday, Mar 10, 2002

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Rollback of LPG price hike?
By Our Special Correspondent

NEW DELHI, MARCH 9. In a first hint at a possible rollback of some of his budget proposals, the Union Finance Minister, Yashwant Sinha, today indicated that he would discuss the LPG price rise issue with the Prime Minister, Atal Behari Vajpayee.

``I will discuss the matter with the Prime Minister. Whatever has to be done would be announced on the floor of Parliament,'' Mr. Sinha told presspersons on the sidelines of a seminar here today. ``I am neither ruling in the possibility nor ruling out the possibility at this moment,'' he added.

Asked for his personal views about a rollback, Mr. Sinha said: ``I have no opinion of my own. The budget I have presented is the decision taken by the Government. Whatever has to been announced is the Government's decision.''

There have been increasing pressures on the Government from within the BJP as well as other NDA partners for a rethink on the increase in LPG, kerosene and fertilizer prices almost immediately after the budget presentation on February 28. Industry, too, has been making its own points which it wants Mr. Sinha to reconsider while some Central Ministries have gone public about the low allocation of funds. BJP MPs have also approached the Prime Minister on the issue of LPG and kerosene prices.

Mr. Sinha backtracked on the issue of allowing more than 26 per cent foreign investment in the insurance sector. Soon after the budget, he had gone public that he was looking at allowing foreign institutional investment in insurance beyond the 26 per cent cap set for foreigners and that the statute would have to be amended if any change had to be made. ``We are looking at it and we will decide on it,'' he had said.

But today, Mr. Sinha was categorical in saying that there was no question of the cap being raised in insurance since it was bound by law passed by Parliament. About increasing the limit on telecom, he said the matter of allowing FII in specified sector beyond the foreign direct investment cap was under consideration and an announcement would be made in due course.

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