Indications from various sources are mixed about the possible outcome of the much awaited meeting of the empowered group of ministers (EGoM) led by finance minister, Mr Pranab Mukherjee on Monday.
While the three major oil refining companies and the ministry of oil and natural gas are certain that there could be deregulation of petrol prices immediately there is a strong view that the EGoM may not take any immediate decision on implementing the recommendations of the Kirit Parikh Committee.
Monday’s meeting will be a preliminary meeting to discuss the pros and cons of the recommendations in detail, they say. This section believes that this is not an opportune time to deregulate petrol and diesel prices, particularly when inflation is still high.
They will also have the freshly minted heroine Mamata Banerjee to contend with as she is part of the EGoM.
The Kirit Parikh Committee had recommended immediate deregulation in the price of petrol as it would not have a cascading affect on prices of commodities.
Showing posts with label Finance Minister. Show all posts
Showing posts with label Finance Minister. Show all posts
Monday, June 7, 2010
Tuesday, March 16, 2010
N-liability Bill deferred as Congress MPs go missing
The government was compelled to defer the introduction of the controversial Civil Liability for Nuclear Damage Bill, 2010, in the Lok Sabha on Monday at the last minute as about 35 Congress MPs and some ministers remained absent despite a party whip.
The Union finance minister and Lok Sabha leader, Mr Pranab Mukherjee, is to issue a showcause notice to them asking why they remained absent, parliamentary sources indicated here on Monday night. "Yes, it is a loss of face. But the survival of the government is more important than the Bill," Union ministers said, recalling how the Vajpayee government had been defeated by just one vote about 10 years ago.
The Bill limits the liability a nuclear plant’s operator in case of an accident at Rs 500 crore. It envisages the setting up of a commission that will investigate and decide who was responsible for the accident, if one happens.
A section of the Congress felt the Bill may have been deferred because of the Trinamul’s opposition, but others questioned how it could join hands with the Left on this issue. Trinamul sources maintained that the party is yet to discuss the Bill and decide its stand. It is learnt that a section within the Trinamul ranks is opposed to the proposed legislation.
Neither the government nor the Congress was able to provide a convincing explanation as to why the Bill was deferred. Was it due to the absent MPs, or the Trinamul’ threat, or were there other hidden factors that compelled the government to delay the introduction of the Bill?
The Prime Minister, Dr Manmohan Singh, was said to be keen on the Bill’s introduction before his visit to the US next month. But this is possible only if the government introduces the Bill in the Lok Sabha on Tuesday, the last day before the three-week recess begins. (The BJP turned down an appeal by the Prime Minister to support the Bill).
The government lacks numbers in the Rajya Sabha as well after the coming together of the NDA, Left, Samajwadi Party and non-Congress parties. Congress sources said the leadership decided to crack the whip as their absence would have led to "loss of face" if the bill was introduced and defeated at that stage itself in case of voting by division. They pointed out that the absence of the MPs and ministers was glaring in view of a three-line whip that was already in place for a bill on archaeological monuments. Added to this was the absence of MPs belonging to coalition allies Trinamul Congress and NCP, the sources said, adding that in such a situation it would have been a "close call".
The Treasury benches grew worried at the number of notices received from the Opposition, including one from Mr Yashwant Sinha (BJP), and Mr Basudeb Acharia of the CPI(M) revealing their intention to oppose the measure at the introduction stage itself.
According to sources, both the controversial bills — the Women’s Reservation Bill and the Civil Liability for Nuclear Damage Bill — could be introduced in the Lok Sabha after a three-week recess, that is after April 12.
Congress MPs have never been serious about their attendance in the House. "We have to prepare for voting any day, we cannot just depend on the laxity of the Opposition," government managers said. Some of the Union ministers are also said to be on tours abroad.
Earlier, the minister of state in the Prime Minister’s Office, Mr Prithviraj Chavan, who was to introduce the bill in the Lok Sabha, realised that the government lacked the numbers to face a floor test if the Opposition pressed for a division at the introduction level. He brought this to the notice of the Prime Minister and Mr Mukherjee after a meeting of the Union cabinet on Monday morning.
The Congress president, Mrs Sonia Gandhi, was informed of the "distress" situation. When the Lok Sabha met, he informally conveyed the government’s decision to defer the bill to Leader of the Opposition in the Lok Sabha, Mrs Sushma Swaraj, the NDA working chairman, Mr L.K. Advani, the Left’s Basudeb Acharia, SP’s Mulayam Singh Yadav and JD(U)’s Sharad Yadav.
While the Opposition was not intact as the BSP members (21) and RJD (three) were absent, the Congress allies were not in full strength. The Trinamul chief and railway minister, Ms Mamata Banerjee, has been giving conflicting signals on these two bills.
The sources said floor managers were of the view that there could be a problem of numbers on Monday morning but they did not expect it to be so bad as to warrant delaying the bill’s introduction. On the other hand, the Opposition was itching for a division to defeat the government’s plans to introduce the bill. At least 15 notices were received from Opposition members expressing their intention to block the bill at the introduction stage itself.
Rattled by the absence, the Congress decided to issue showcause notices to 35 of its MPs, including ministers, asking them why action should not be taken against them.
Information of the government’s decision came just before Mr Chavan was slated to introduce the bill. The Lok Sabha Speaker, Ms Meira Kumar, then said that she had received a notice when Ms Swaraj stood up to demand that her party be allowed to speak against the proposed legislation. The Speaker informed her that the government does not intend introducing the Bill on Monday, which was greeted with thumping of desks by BJP MPs.
Several BJP and Left MPs jumped to their feet to protest against the Bill only to be told by the Speaker, "I have accepted the request... the Bill has not been introduced... we have moved on to Zero Hour."
Of course, indications of the government’s intention had come prior to the formal announcement by the Speaker for Mr Chavan was seen walking up and uttering a few words to Mr Sharad Yadav and Mr Basudeb Acharia as also to Mr Advani and Ms Swaraj while they sat in their seats.
Ms Swaraj later drew the Speaker’s attention
to the fact that the government had said that it "intends" not to introduce the Bill. She pointed out that the Lok Sabha does not run based on the government’s intentions but follows the rules laid down for it. Ms Swaraj maintained that since the Bill was slotted for introduction in Monday’s business list, a motion needed to be introduced by the Speaker on whether the government could be allowed to withdraw its decision. The Speaker then ruled that since the Bill had not been introduced, there was no need for a motion to allow its withdrawal.
A little later, Mr Advani stood up to speak, telling the Speaker, "Your decision is correct. But the Bill is listed... if the government suddenly decides not to introduce it, that is its right." But he added, "It is the government’s kartavya (duty) to tell the House why it is not being introduced. When it was in the business list, why is it being postponed?”
The Union finance minister and Lok Sabha leader, Mr Pranab Mukherjee, is to issue a showcause notice to them asking why they remained absent, parliamentary sources indicated here on Monday night. "Yes, it is a loss of face. But the survival of the government is more important than the Bill," Union ministers said, recalling how the Vajpayee government had been defeated by just one vote about 10 years ago.
The Bill limits the liability a nuclear plant’s operator in case of an accident at Rs 500 crore. It envisages the setting up of a commission that will investigate and decide who was responsible for the accident, if one happens.
A section of the Congress felt the Bill may have been deferred because of the Trinamul’s opposition, but others questioned how it could join hands with the Left on this issue. Trinamul sources maintained that the party is yet to discuss the Bill and decide its stand. It is learnt that a section within the Trinamul ranks is opposed to the proposed legislation.
Neither the government nor the Congress was able to provide a convincing explanation as to why the Bill was deferred. Was it due to the absent MPs, or the Trinamul’ threat, or were there other hidden factors that compelled the government to delay the introduction of the Bill?
The Prime Minister, Dr Manmohan Singh, was said to be keen on the Bill’s introduction before his visit to the US next month. But this is possible only if the government introduces the Bill in the Lok Sabha on Tuesday, the last day before the three-week recess begins. (The BJP turned down an appeal by the Prime Minister to support the Bill).
The government lacks numbers in the Rajya Sabha as well after the coming together of the NDA, Left, Samajwadi Party and non-Congress parties. Congress sources said the leadership decided to crack the whip as their absence would have led to "loss of face" if the bill was introduced and defeated at that stage itself in case of voting by division. They pointed out that the absence of the MPs and ministers was glaring in view of a three-line whip that was already in place for a bill on archaeological monuments. Added to this was the absence of MPs belonging to coalition allies Trinamul Congress and NCP, the sources said, adding that in such a situation it would have been a "close call".
The Treasury benches grew worried at the number of notices received from the Opposition, including one from Mr Yashwant Sinha (BJP), and Mr Basudeb Acharia of the CPI(M) revealing their intention to oppose the measure at the introduction stage itself.
According to sources, both the controversial bills — the Women’s Reservation Bill and the Civil Liability for Nuclear Damage Bill — could be introduced in the Lok Sabha after a three-week recess, that is after April 12.
Congress MPs have never been serious about their attendance in the House. "We have to prepare for voting any day, we cannot just depend on the laxity of the Opposition," government managers said. Some of the Union ministers are also said to be on tours abroad.
Earlier, the minister of state in the Prime Minister’s Office, Mr Prithviraj Chavan, who was to introduce the bill in the Lok Sabha, realised that the government lacked the numbers to face a floor test if the Opposition pressed for a division at the introduction level. He brought this to the notice of the Prime Minister and Mr Mukherjee after a meeting of the Union cabinet on Monday morning.
The Congress president, Mrs Sonia Gandhi, was informed of the "distress" situation. When the Lok Sabha met, he informally conveyed the government’s decision to defer the bill to Leader of the Opposition in the Lok Sabha, Mrs Sushma Swaraj, the NDA working chairman, Mr L.K. Advani, the Left’s Basudeb Acharia, SP’s Mulayam Singh Yadav and JD(U)’s Sharad Yadav.
While the Opposition was not intact as the BSP members (21) and RJD (three) were absent, the Congress allies were not in full strength. The Trinamul chief and railway minister, Ms Mamata Banerjee, has been giving conflicting signals on these two bills.
The sources said floor managers were of the view that there could be a problem of numbers on Monday morning but they did not expect it to be so bad as to warrant delaying the bill’s introduction. On the other hand, the Opposition was itching for a division to defeat the government’s plans to introduce the bill. At least 15 notices were received from Opposition members expressing their intention to block the bill at the introduction stage itself.
Rattled by the absence, the Congress decided to issue showcause notices to 35 of its MPs, including ministers, asking them why action should not be taken against them.
Information of the government’s decision came just before Mr Chavan was slated to introduce the bill. The Lok Sabha Speaker, Ms Meira Kumar, then said that she had received a notice when Ms Swaraj stood up to demand that her party be allowed to speak against the proposed legislation. The Speaker informed her that the government does not intend introducing the Bill on Monday, which was greeted with thumping of desks by BJP MPs.
Several BJP and Left MPs jumped to their feet to protest against the Bill only to be told by the Speaker, "I have accepted the request... the Bill has not been introduced... we have moved on to Zero Hour."
Of course, indications of the government’s intention had come prior to the formal announcement by the Speaker for Mr Chavan was seen walking up and uttering a few words to Mr Sharad Yadav and Mr Basudeb Acharia as also to Mr Advani and Ms Swaraj while they sat in their seats.
Ms Swaraj later drew the Speaker’s attention
to the fact that the government had said that it "intends" not to introduce the Bill. She pointed out that the Lok Sabha does not run based on the government’s intentions but follows the rules laid down for it. Ms Swaraj maintained that since the Bill was slotted for introduction in Monday’s business list, a motion needed to be introduced by the Speaker on whether the government could be allowed to withdraw its decision. The Speaker then ruled that since the Bill had not been introduced, there was no need for a motion to allow its withdrawal.
A little later, Mr Advani stood up to speak, telling the Speaker, "Your decision is correct. But the Bill is listed... if the government suddenly decides not to introduce it, that is its right." But he added, "It is the government’s kartavya (duty) to tell the House why it is not being introduced. When it was in the business list, why is it being postponed?”
Wednesday, March 3, 2010
Opposition steps up offensive on price hike
Sensing an opportunity to expose the lack of unity in the United Progressive Alliance (UPA) on the issue of hike in the taxes on petroleum products, the Bharatiya Janata Party-led Opposition is drawing up plans to embarrass the government.
The BJP also plans to take Opposition unity on this issue to a new plane even as the Left parties decided to step up pressure on the government leading to its March 12 rally in the capital against rise in the prices of essential commodities.
BJP spokesperson Prakash Javadekar on Tuesday criticised Prime Minister Manmohan Singh for the “arrogance of power” displayed in his assertion that there would be no rollback of the increased taxes on petroleum products announced in the budget.
On Wednesday the party would plan its floor strategy on this issue and other subjects at a meeting of National Democratic Alliance leaders.
The Communist Party of India (Marxist) general secretary Prakash Karat said the party did not accept the argument offered by the government to justify the hike in petroleum products.
In the context of the rise in prices of food items, he said, the effect of the hike on petrol and diesel prices would be felt and cannot be minimised. “People will be put to great suffering if there is further rise in prices, of food items in particular,” he told The Hindu.
As for the Opposition strategy in Parliament, he said while the CPI(M) was trying to bring non-Congress secular parties together, on the issue of price rise, the entire Opposition was agitated and last week’s development in Parliament was an expression of that.
After Tuesday’s strike in Kerala against the hike in fuel prices, the Left Front will hold week-long demonstrations across West Bengal. Between March 3 and 9, the Left parties will conduct processions in various places.
Separately, trade unions across the political spectrum have decided to go on a mass agitation in different parts of the country in the form of road and rail blockades, and satyagraha to protest the rise in prices of essential commodities and now the hike in petroleum products.
All India Trade Union Congress general secretary Gurudas Dasgupta, MP, told The Hindu, that for the first time all trade unions including those affiliated to the Congress and the BJP would agitate on March 5. Lakhs of workers will offer arrest in metropolitan and industrial centres in the country.
Cut motion
The BJP said the party wants to use a cut motion during the vote on the Finance Bill in the second part of the budget session less as a tool to defeat the government and more to show up the fissures in the UPA as the Dravida Munnetra Kazhagam and the Trinamool Congress have both demanded a rollback of the tax hike.
The party is hoping that Opposition unity would take place automatically and on the spur of the moment as it materialised when one party after another walked out during the budget presentation on February 26 in the Lok Sabha.
The BJP also plans to take Opposition unity on this issue to a new plane even as the Left parties decided to step up pressure on the government leading to its March 12 rally in the capital against rise in the prices of essential commodities.
BJP spokesperson Prakash Javadekar on Tuesday criticised Prime Minister Manmohan Singh for the “arrogance of power” displayed in his assertion that there would be no rollback of the increased taxes on petroleum products announced in the budget.
On Wednesday the party would plan its floor strategy on this issue and other subjects at a meeting of National Democratic Alliance leaders.
The Communist Party of India (Marxist) general secretary Prakash Karat said the party did not accept the argument offered by the government to justify the hike in petroleum products.
In the context of the rise in prices of food items, he said, the effect of the hike on petrol and diesel prices would be felt and cannot be minimised. “People will be put to great suffering if there is further rise in prices, of food items in particular,” he told The Hindu.
As for the Opposition strategy in Parliament, he said while the CPI(M) was trying to bring non-Congress secular parties together, on the issue of price rise, the entire Opposition was agitated and last week’s development in Parliament was an expression of that.
After Tuesday’s strike in Kerala against the hike in fuel prices, the Left Front will hold week-long demonstrations across West Bengal. Between March 3 and 9, the Left parties will conduct processions in various places.
Separately, trade unions across the political spectrum have decided to go on a mass agitation in different parts of the country in the form of road and rail blockades, and satyagraha to protest the rise in prices of essential commodities and now the hike in petroleum products.
All India Trade Union Congress general secretary Gurudas Dasgupta, MP, told The Hindu, that for the first time all trade unions including those affiliated to the Congress and the BJP would agitate on March 5. Lakhs of workers will offer arrest in metropolitan and industrial centres in the country.
Cut motion
The BJP said the party wants to use a cut motion during the vote on the Finance Bill in the second part of the budget session less as a tool to defeat the government and more to show up the fissures in the UPA as the Dravida Munnetra Kazhagam and the Trinamool Congress have both demanded a rollback of the tax hike.
The party is hoping that Opposition unity would take place automatically and on the spur of the moment as it materialised when one party after another walked out during the budget presentation on February 26 in the Lok Sabha.
Friday, February 26, 2010
Petrol prices to rise by up to Rs 2.67 a litre
Petrol and diesel prices will go up by Rs 2.67 a litre and Rs 2.58 per litre, respectively, after Finance Minister Pranab Mukherjee on Friday raised customs and excise duties on the two, virtually putting the Kirit Parikh Committee report on fuel price in cold storage.
Customs duty on petrol and diesel were hiked to 7.5 per cent from 2.5 per cent while excise duty was raised by Re.1 a litre to Rs 14.35 and Rs 4.60 per litre on non-branded (normal) petrol and diesel respectively.
The incidence of customs and excise duty would result in petrol prices going up by Rs 2.67 a litre in Delhi and diesel by Rs 2.58 per litre with effect from midnight tonight.
Petrol, in Delhi currently costs Rs 44.72 a litre and diesel Rs 32.92 per litre.
Mr. Mukherjee also imposed 5 per cent import duty on crude (currently nil), a move that would impact refiners like Reliance Industries and Essar Oil with their input cost going up.
Reliance Industries’ 33 million tons a year refinery catering to domestic market would alone have to bear Rs 5,100 crore because of higher rates. Its other 29 million tons unit is only for exports and does not pay customs duty.
The rates hike virtually put the Parikh report on fuel pricing reforms in cold storage as implementing the expert group report on freeing petrol and diesel prices would mean a further Rs 4.94 a litre increase in petrol and Rs 3.20 per litre hike in diesel rates.
Customs duty on petrol and diesel were hiked to 7.5 per cent from 2.5 per cent while excise duty was raised by Re.1 a litre to Rs 14.35 and Rs 4.60 per litre on non-branded (normal) petrol and diesel respectively.
The incidence of customs and excise duty would result in petrol prices going up by Rs 2.67 a litre in Delhi and diesel by Rs 2.58 per litre with effect from midnight tonight.
Petrol, in Delhi currently costs Rs 44.72 a litre and diesel Rs 32.92 per litre.
Mr. Mukherjee also imposed 5 per cent import duty on crude (currently nil), a move that would impact refiners like Reliance Industries and Essar Oil with their input cost going up.
Reliance Industries’ 33 million tons a year refinery catering to domestic market would alone have to bear Rs 5,100 crore because of higher rates. Its other 29 million tons unit is only for exports and does not pay customs duty.
The rates hike virtually put the Parikh report on fuel pricing reforms in cold storage as implementing the expert group report on freeing petrol and diesel prices would mean a further Rs 4.94 a litre increase in petrol and Rs 3.20 per litre hike in diesel rates.
Cars, cigarettes, TVs, jewellery to cost more; toys to cost less
Consumers will have to pay more for petrol, diesel, cars, TVs, cigarettes, tobacco, air-conditioner, gold and silver as the Government on Friday announced hike in excise duty as part of a partial roll back of stimulus measures announced for reviving the economy.
On the other hand, mobile accessories, medical equipment energy efficient CFL lamps, set top boxes, compact disc, toys and books will be cheaper on account of some tax concessions offered on these items by Finance Minister Pranab Mukherjee in the Union Budget for 2010-11.
“Symptoms of economic recovery are widespread and more clear now,” he said.
Before announcing the tax measures, Mr. Mukherjee substantially cut income tax rates along with other direct tax concessions that would result in a net loss of Rs 26,000 crore to the exchequer.
On the other hand, mobile accessories, medical equipment energy efficient CFL lamps, set top boxes, compact disc, toys and books will be cheaper on account of some tax concessions offered on these items by Finance Minister Pranab Mukherjee in the Union Budget for 2010-11.
“Symptoms of economic recovery are widespread and more clear now,” he said.
Before announcing the tax measures, Mr. Mukherjee substantially cut income tax rates along with other direct tax concessions that would result in a net loss of Rs 26,000 crore to the exchequer.
