PM warns against exit of economic stimulus

The withdrawal of economic stimulus packages by advanced countries like France, Germany and Great Britain may lead to double-digit recession, warned the Prime Minister, Dr Manmohan Singh.

Without naming the troika, the Prime Minister said, “Contractionary policies, if followed by many
industrialised countries simultaneously, could provoke a double-dip recession”.

Addressing G-20 leaders of key emerging and advanced countries, the Prime Minister pointed to great risks in destabilising fragile recovery and deflation vis-à-vis inflation.

He prescribed a measured and calibrated exit from stimulus measures by developed countries that face “fiscal stress” and deficits. For countries like the US, where the markets have been nervous, he prescribed fiscal consolidation as the way forward.

The UK’s Tory-LibDem coalition government has already announced an aggressive package of steep cuts in budget spending, mopping up funds by taxing banking transactions.

The Prime Minister warned the developed countries from resorting to protectionist policies or imposing trade barriers with an adverse impact on revival in demand for goods and services in developing countries.

Manmohan announces Rs 2 lakh solatium

Prime Minister Manmohan Singh has expressed grief over the death of Gyaneswari Express passengers and announces Rs 2 lakh to the relatives of the deceased and Rs 50,000 for each of those seriously injured.

At least 20 passengers were killed and 150 injured when suspected Maoists blasted rail tracks in West Midnapore district early Friday derailing 13 coaches of a Mumbai-bound express train which rammed into three bogies of a goods train.

3G spectrum, Aircel, Idea, telecom companies

A significant hike in the prices of petrol and diesel are on the cards following the hike in the price of natural gas on Wednesday. An empowered group of ministers (eGoM) constituted by the Prime Minister, Dr Manmohan Singh, will meet on June 7 to decided on the issue of liberalising prices of auto fuel as recommended by the Kirit Parikh committee.

The petroleum ministry and the planning commission have been in favour of implementing the Kirit Parikh report. The petroleum ministry had proposed freeing the prices of petrol and diesel along with an increase in the prices of LPG and kerosene.

The oil marketing companies are currently losing over Rs 6 per litre on the sale of both the petrol and diesel. Freeing the auto fuels from the government control would mean a hike of Rs 6 per litre in both these fuels. One of the options which the eGoM could consider is that it could decontrol the price of petrol and diesel but implement it in phases.

The PSU oil marketing companies are estimated to be losing Rs 90,000-crore on account of selling fuels at less than market rates in 2010-11. These firms had lost Rs 46,000 crore last fiscal. Currently PSU oil marketing companies are losing Rs 255 crore per day on the sale of fuels at subsidised rates. They are losing Rs 254.3 on each LPG cylinder and Rs 19.7 per litre of kerosene.

The Kirit Parikh committee report had recommended freeing of petrol and diesel prices and a hike of Rs 100 in LPG and Rs 6 per litre in kerosene. The government had on Wednesday more than doubled the price of natural gas to $ 4.20 per mmBtu.

India, Pak back to the future

After a suspense-breaking dialogue here between the Prime Minister, Dr Manmohan Singh, and his Pakistan counterpart, Mr Yousaf Raza Gilani, that lasted over an hour on Thursday, it has been decided that the foreign ministers and the foreign secretaries of the two countries would lay the groundwork “as early as possible” in an effort to “normalise” relations, and to “work effectively to enlarge the constituency of peace in both countries”.

Meeting for a substantive conversation with Mr Gilani for the first time since the Sharm el-Sheikh talks last July which raised a controversy in India, Dr Singh made it plain that there was a lack of mutual trust in the relationship between the two countries.

Asked if the Singh-Gilani engagement in the Bhutanese capital did not amount to a resumption of the comprehensive dialogue process that Pakistan has insistently demanded, the foreign secretary, Ms Nirupama Rao, who briefed the media, said she would not be drawn into categorising the discussion between the two Prime Ministers.

“We are not getting stuck on nomenclature. The process is aimed at building more trust,” she said. Responding to a question, the foreign secretary said the Pakistan Prime Minister did not raise the allegation of India assisting anti-Pakistan terrorists in Balochistan. In his press briefing on Thursday’s talks, the Pakistan foreign minister, Mr Shah Mehmood Qureshi, confirmed this. The mention of this theme in the joint statement issued at Sharm el-Sheikh had raised hackles in India.

Dr Singh told Mr Gilani that terrorism aimed at India from Pakistani soil, the rise of infiltration in Kashmir, and the slow progress in Pakistan on the trial of those who planned and executed the 26/11 Mumbai attacks had been a stumbling block.

PM to meet CMs on price rise today

Prime Minister Manmohan Singh will on Thursday meet with core group of chief ministers and discuss the price rise isssue with them. The PM has invited political parties to contribute their "wisdom and experience" to help evolve "practical and pragmatic" solution to the problem.

"I would like to discuss (issue of price rise) with chief ministers," Singh told reporters on Wednesday at the Rashtrapati Bhawan after the presentation of Padma Awards by President Pratibha Patil.

Amid fears of inflation crossing double digit mark, Singh will meet Chief Ministers of 10 major states and senior Cabinet ministers tomorrow to discuss measures to check price rise.

Asked about decision of the Left parties to launch 'jail bharo' agitation on price rise, Singh said, "I don't think this problem can be solved by agitational tactics.

Manmohan to attend nuclear security summit

Prime Minister Manmohan Singh will attend a global meeting in Washington convened by U.S. President Barack Obama next week aimed at strengthening national measures on protecting nuclear material and combating their trafficking.

The initiative, while adhering to multilateral instruments and norms, would help in the expanded use of civil nuclear energy, Foreign Secretary Nirupama Rao told newspersons here on Sunday.

The two-day summit beginning on April 12 would not be country-specific but would be aimed at eliminating clandestine proliferation and trafficking in nuclear weapons and material.

Asked why Iran and the Democratic People's Republic of Korea were not invited and if the issue was raised during the two preparatory conferences, Ms. Rao said discussions were held in the “global context.” She described Iran as a responsible country in the region with which India had substantive relations.

India was closely involved in the run-up to the meet for the past six months due to its concern over the possibility of terrorist groups acquiring nuclear devices and material. “Since 2002, we have been piloting a resolution at the U.N. on preventing terrorists from acquiring weapons of mass destruction. We are also active in working with the IAEA [International Atomic Energy Agency] on setting and enforcing standards on protection of nuclear material and facilities as well as on combating illicit trafficking in nuclear material,” she said.

The Prime Minister will reach Washington on April 12 and attend a dinner hosted by Mr. Obama where leaders from 43 countries and organisations will discuss the threat of nuclear terrorism.

Two plenary sessions will be held the next day on national measures and international cooperation to enhance nuclear security. A working lunch will be addressed by IAEA Director-General Yukiya Amano. The summit will conclude after issuing an outcome document.

All children should have access to education: Manmohan

Prime Minister Manmohan Singh on Thursday said the government was committed to ensuring that all children irrespective of gender and social category have access to education and fund constraints would not be allowed to hamper implementation of the Right to Education Act.

Addressing the nation as the Right to Education Act went into force on Thursday, he said, “the government is committed to ensuring that all children irrespective of gender and social category, have access to education.”

“Our government, in partnership with state governments, will ensure that financial constraints do not hamper the implementation of the Right to Education Act” he said.

Adding a personal touch to the importance of education, the Prime Minister recalled his own childhood days as someone born in a family of modest means who had to walk a long distance to go to school. “I read under the dim light of a kerosene lamp. I am what I am today because of education,” he said.

“I want every Indian child, girl and boy, to be so touched by the light of education. I want every Indian to dream of a better future and live that dream”, Dr. Singh said.

Recalling the desire of Gopal Krishna Gokhale about 100 years ago when he had urged the Imperial Assembly to confer on the Indian people the Right to Education, Dr. Singh said about 90 years later the Constitution was amended to enshrine the Right to Education as a fundamental right.

“Today, our government comes before you to redeem the pledge of giving all our children the right to elementary education,” Dr. Singh said adding “this demonstrates our national commitment to the education of our children and to the future of India “.

Pointing out that India is a country of young people, he said “it is the belief of our government that if we nurture our children and young people with the right education, India’s future as a strong and prosperous country is secure.”

Dr. Singh said the government at the Centre, in states and union territories and authorities at district and village levels must work together as part of a common national endeavour to realise the Right to Education and asked the states to join in this national effort with “full resolve and determination“.

Noting that success of any educational endeavour was based on the ability and motivation of teachers and the implementation of the Right to Education is no exception, he asked the teachers across the country to become partners in this effort.

At the same time, Dr. Singh said it was also incumbent upon all to work together to improve the working conditions of teachers and enable them to teach with dignity, giving full expression to their talent and creativity.

Parents and guardians too have a critical role to play having been assigned school management responsibilities under the Act, he said adding “the needs of every disadvantaged section of our society, particularly girls, Dalits, adivasis and minorities must be of particular focus as we implement this Act.”

No change to Women’s Bill: PM

The Prime Minister, Dr Manmohan Singh, on Wednesday dismissed as “too premature” the possibility of any dilution in the Women’s Reservation Bill ahead of a meeting of leaders of political parties in the Lok Sabha. The meeting has been convened here on April 5 for wider consultations with political party leaders to try and evolve at a consensus.
The Congress has rejected suggestions of any dilution in the bill during its official briefing held on Wednesday afternoon, while the law minister, Mr M. Veerappa Moily, had on Tuesday said the government would be going ahead with the bill in its present form in the Lok Sabha in the second phase of the Budget Session beginning April 15.
“It is too premature” was Dr Singh’s cryptic response when asked whether the bill, which seeks to provide 33 per cent reservation to women in the Lok Sabha and the state Assemblies, could see any dilution in view of the opposition by some political parties.
He said the matter was under discussion. “We will discuss with political parties how best to proceed. We are committed to discussing the issue”.
The current mood in the Congress and the government is not for dilution in this historic piece of legislation after realising that the party stands to gain and the BJP, Left will have no option but to support it.
The Mandalite parties — SP, JD(U) and the RJD — which are confined to Uttar Pradesh and Bihar, cannot stop the historic process, initiated by the Congress chief, Mrs Sonia Gandhi, even at the stake of the government at the Centre, insiders viewed.

Manmohan Singh to get World Statesman award

The Appeal of Conscience Foundation on Friday announced to felicitate Prime Minister Manmohan Singh with its prestigious World Statesman Award for the year 2010.

The award would be presented to the Prime Minister in September, said John Negroponte, the former Deputy Secretary of State, at a reception hosted at the residence of Indian Ambassador to the U.S. Meera Shankar in Washington on Thursday.

Ms. Shankar said the Prime Minister has graciously accepted the award.

Among the past recipients of this prestigious award include British Prime Minister Gordon Brown (2009), French President Nicolas Sarkozy (2008), German Chancellor Angela Merkel (2007) and Brazilian President Luiz Inacio Lula da Silva (2006).

The Appeal of Conscience Foundation was founded by Rabbi Arthur Schneier in 1965. It has worked on behalf of religious freedom and human rights throughout the world.

This interfaith coalition of business, religious and foreign policy leaders promotes peace, tolerance and ethnic conflict resolution.

It also provides a voice of conscience to protect minorities at a time of increasing ethnic conflict in many regions of the world.

Manmohan to meet Lalu, Mulayam

Driven up the wall on the Women's Reservation Bill, the Rashtriya Janata Dal and the Samajwadi Party on Monday said they would withdraw support to the United Progressive Alliance government if the law was passed its present form.

Both RJD chief Lalu Prasad and SP supremo Mulayam Singh called on Prime Minister Manmohan Singh to convey their decision and concern over the stand taken by the UPA government. Soon after, the Prime Minister hurriedly met leaders belonging to the Bahujan Samaj Party, arch-rival of the SP.

Dr. Singh is said to have decided to meet Mr. Prasad, Mr. Singh and Janata Dal (United) chief Sharad Yadav, who too is waging a war on the issue separately, ahead of Tuesday's all-party meeting in an obvious bid to placate them well aware that withdrawal of support could pose problems to his government.

Later in the evening, Mr. Prasad called on President Pratibha Patil to explain the party's opposition to the Bill.

Mr. Prasad and Mr. Yadav jointly declared their intention to withdraw support to the government. Both said the Congress was behaving autocratically and sought to ride roughshod over them.

The RJD has four members and the SP 21 in the Lok Sabha and both parties had given the President letters of their unilateral support to the government. They were not part of the list submitted by Dr. Singh while staking claim to form the government.

Together the RJD and the SP have 15 members in the Rajya Sabha, where the Congress is already in a minority and this shortfall will only make floor management a difficult proposition should the Opposition press for a division on routine affairs.

Both Mr. Prasad and Mr. Singh stressed that they could reconsider their decision only if the government accommodated their view and effected amendments in the Bill allowing for sub-reservation for women belonging to the deprived sections.

Acting in tandem, these two leaders charged that the Prime Minister had not cared to heed their request to convene an all-party meeting to build consensus. Asked if they intended formalising their decision by calling on the President, the RJD chief asked: “Isn't my public proclamation sufficient?”

Mr. Prasad was particularly severe, charging that the UPA's action to deny reservation to women from Dalits, backward classes and minorities amounted to “political dacoity.”

Notwithstanding the decision of these two parties, Dr. Singh discussed the fallout with senior colleagues.

Should they formally withdraw support, the UPA will be left with about 290 members in the 543-member Lok Sabha, just a tad above the half-way mark.

BJP urges Manmohan to introduce Bill on Telangana

Expressing concern over continuing violence and protests in Andhra Pradesh over the Telangana issue, the Bharatiya Janata Party on Thursday urged Prime Minister Manmohan Singh to immediately bring a Bill in Parliament to pave the way for creation of a separate State to help defuse the volatile situation in the southern State.

Stating that the BJP would fully support the Bill in Parliament, senior party leader Venkaiah Naidu criticised the Congress-led United Progressive Alliance government for adopting a “casual approach” while dealing with the “burning issue.”

“Students are committing suicide… there are protests and bandhs everyday that is hurting the life and business in the progressive State. The Centre should take all political parties into confidence and create the separate State without any further delay,” he said in the Rajya Sabha while taking part in the discussion on Motion of Thanks to the President's Address.

Questioning the logic behind the constitution of Justice Srikrishna Committee, Mr. Naidu said that instead of putting the issue on a “pause” mode, the Centre should take a bold step and facilitate the early creation of the separate state. Criticising Union Home Minister P. Chidambaram for his hasty announcement that a Telangana state would be formed — which led to all kinds of trouble — he urged the Prime Minister to pay “personal attention” to the issue and talk to all parties for restoring normality to Andhra Pradesh.

BJP MP Prakash Javadekar, while raising the issue during zero hour in the Rajya Sabha, said his party was committed to statehood for Telangana and citied examples of the three States of Jharkhand, Uttarakhand and Chhattisgarh that were created during the NDA regime without any hassles.

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.

PM rules out rollback of oil prices

 

Prime Minister Manmohan Singh on Monday ruled out rollback of petrol and diesel prices, saying the economy has the capacity to absorb the increase without triggering inflationary pressure.

“Any increase in prices does hurt some people, but we have to take a long-term view,” he told reporters accompanying him on his way back home from Saudi Arabia.

Mr. Singh made it clear that following populist fiscal policies for long harm would the economy.

“We cannot save people from inflation if we follow all populist fiscal policies. Sooner or later these populist policies if persisted for a long time to come will lead to the erosion of the investment climate,” he said.

The Prime Minister was asked about growing concerns over the recent hike in oil prices and the ripple effect that may have on the economy.

The Prime Minister said populist fiscal policies would also lead to the erosion of the capacity to create new jobs which in turn will erode the government’s ability to invest in flagship programmes for the poor people.

“So we have to balance these factors." The direct effect of the increase in the fuel prices effect on the Wholesale Price Index will be no more than 0.40 per cent, the Prime Minister said.

He said there may be some escalation but “my hope now is that with the Rabi crop coming into the market, prices which have caused a great degree of concerns in areas like wheat, sugar, oilseeds and pulses, will see some moderation“.

He expressed confidence that the economy has the capacity to absorb the hike in oil prices without setting in motion any inflationary spiral.

An exceedingly good budget: Manmohan

Prime Minister Manmohan Singh on Friday described the Union budget presented by Finance Minister Pranab Mukherjee as an “exceedingly good” and one which would help the economy return to nine per cent growth.

Stating that it represented “a job well done,” Dr. Singh said: “You must look at the total picture emerging from the budget. The net revenue gain for the Finance Minister is only Rs.20,000 crore. In an economy as large as India, this resource mobilisation effort and balance should not trigger any inflationary expectation. At the same time, it gives the muscle needed.”

Defending Mr. Mukherjee within minutes of the Finance Minister drawing the ire of nearly half the Lok Sabha for the proposal regarding restructuring of fuel prices, Dr. Singh said: “The Finance Minister has not called back to the pre-stimulus excise duty rate. He has still exercised moderation signalling the economy that you cannot have all things together.”

On the issue of fuel price restructuring, the Prime Minister explained that “the economy has the capacity to absorb this order of adjustments in excise duties and customs duties without generating a wholesale inflationary spiral.” Further, he sought to point out that these duties were reduced when petroleum prices had touched $112 a barrel. “Now, petroleum prices are much lower,” he added.

As for the introduction of Goods and Services Tax, Dr. Singh said it required a consensus and that all States would have to be on board for it to be implemented. Hopeful of addressing such contentious issues during the year, the Prime Minister sought to sound optimistic about the economy, maintaining that it would grow by 7.2 per cent despite a negative agricultural growth.

Three objectives

For his part, Mr. Mukherjee said he had three objectives while formulating the budget — fiscal consolidation, inclusive growth and returning the country to a growth trajectory as quickly as possible.

Confident of achieving the budgetary proposals vis-À-vis growth and fiscal consolidation, he underlined the fact that 37 per cent of the plan allocation had been set aside for the social sector.

Though he refused to field questions in the post-budget customary fleeting interaction with the media on Parliament House premises, Mr. Mukherjee further stressed the “aam aadmi” component by pointing out that 25 per cent of the plan allocation for infrastructure development — which alone accounted for 46 per cent of the total — was reserved for rural India.

'Sachin has climbed the Mt Everest of the game'

President Pratibha Patil and Prime Minister Manmohan Singh on Wednesday congratulated Sachin Tendulkar for becoming the first cricketer to score a double ton in One-day internationals and said the “master batsman” has climbed the Mt Everest of the game.

“Sachin Tendulkar has yet again rewritten the record books of cricket, by climbing yet another Mt Everest of the game,” Patil said in a message.

She said in setting a new benchmark for the highest score by a batsman in One-day internationals as well as in notching up a double century, “the master batsman has set stiff targets” for future generation of cricketers to break.

Terming it a “magnificent achievement”, the Prime Minister said that Sachin has led by “example and that all Indians are proud of his achievement“.

Singh wished him many more glorious years in his cricketing career.

Tendulkar created history by becoming the first cricketer to score a double century in One-day internationals with a breath0taking unbeaten 200 to steer India to a massive 401 for three against South Africa in the second cricket ODI in Gwalior.

We are alive to situation over Telangana: Manmohan

Prime Minister Manmohan Singh on Monday said the government understood the situation in Andhra Pradesh over the Telangana issue and would deal with the problem appropriately.

He conveyed this to a group of 11 Congress Lok Sabha members from Telangana who met him in Parliament House and sought stopping of police repression on students on the Osmania University campus, withdrawal of cases filed against them and an early solution to the issue as the people were pressuring the elected representatives to quit their posts.

The MPs expressed their disappointment over non-mention of the Telangana issue in the President’s address to Parliament.

According to the Peddapalli MP, G. Vivekanand, Dr. Singh said: “I can understand the situation in Telangana. We will deal with the situation.”

Concern over deaths

Madhu Yaski (Nizamabad) said Dr. Singh told them that the government was working out a solution and also expressed concern over the deaths of people during the agitation.

Earlier, during the President’s address, some Telangana MPs wore black shirts and waved placards — which read “Jai Telangana, Jai Congress” — demanding the creation of a separate State. They staged a protest near the Gandhi statue in the Parliament complex and mourned student Yadaiah, who immolated himself recently in Hyderabad pressing for a separate State.

The MPs claimed that after the President’s address they observed a two-minute silence in the Central Hall in memory of those who laid down their lives for the cause of Telangana.

Meanwhile, Congress spokesman Abhishek Singhvi said it was not necessary for the President to comment on every issue. Non-mention of an issue did not mean it had been left out of the policy of the government and the Cabinet.

He denied that the government was not according priority to the Telangana issue. “It has got so much priority that it has now gone on the process of a committee.”

Comprehensive look

Mr. Singhvi said a comprehensive look at the issue was being taken as the committee was set up after detailed deliberations and the process should be allowed its time. Raking up the issue without allowing the process to unfold could only impede the progress.

Manmohan appeals to Opposition not to disrupt Parliament

Appealing to the Opposition to allow smooth functioning of Parliament during the Budget session, Prime Minister Manmohan Singh on Monday said all issues agitating them can be debated on the floor of the House.

“The Government is ready to discuss all issues in Parliament and I, therefore, appeal to the Opposition not to have any disruption of Parliamentary proceedings.

“Parliament is a forum for debate and the Government is ready for it,” Mr. Singh said as he arrived in Parliament for the start of the Budget session.

Talking to reporters, Mr. Singh said, “We seek the Opposition’s cooperation in the smooth running of this important session which will be devoted to the passage of the Budget both the general budget and the railway budget.“

Asking the Opposition members to cooperate with the Government, he said, “All issues which agitate the mind of the Opposition can be debated” in Parliament.

He parried questions on measures the government would adopt with regard to the new fertiliser policy.

Obama speaks to Manmohan, condemns Pune blast

US President Barack Obama on Thursday spoke to Prime Minister Manmohan Singh and condemned last week’s terror blast in Pune that has claimed 11 lives.

In the brief telephonic conversation, Mr. Obama condoled the loss of lives, the Prime Minister’s Office said.

“The two leaders took the opportunity to review developments in Indo-US relations,” it said.

The Obama administration has offered FBI help in the investigation into Saturday’s blast at the German Bakery, a popular eatery in Pune’s posh Koregaon Park area.

The US State Department has said it is working with India and Pakistan to combat the threats the three countries face from terrorist and extremist groups.

“The information we have shared so far has been quite unprecedented, and we intend to continue to working with the Government of India to try and protect our two societies from these types of attacks,” Acting US State Department Spokesman Gordon Duguid said.

The worst is over on food inflation, says Manmohan

Expressing concern at the distress caused to people by price rise, Prime Minister Manmohan Singh on Saturday said the worst was over on food inflation.

“With good crop prospects, remunerative prices being in place and Indian prices broadly in line with international prices, we will soon be able to stabilise food prices,” he said at a conference of Chief Ministers here.

“This is not the first time that we are facing high rates of inflation of food articles. We had a similar upsurge in 1998. Food prices are subject to cyclical bursts of inflations and we must work together to bring them under reasonable control.”

Dr. Singh said high prices caused by a shortfall in output could be handled only by augmenting supply either through a drawdown of available stocks or through imports. “As far as imports are concerned, we are freely allowing imports of those food articles whose prices have been under pressure. We have also discouraged or completely banned the export of these items.”

Turning to the “vital role of State governments in managing inflation,” he said they must use their powers under the Essential Commodities Act to prevent artificial scarcity and intervene in the market whenever required.

Retail trade

At the same time, the Prime Minister underscored the need to look at opening up retail trade. There was a wide difference between the retail and farm gate prices. “We need greater competition and therefore, need to take a firm view on opening retail trade.”

He urged the States to gear themselves up for rabi (winter) crops and also plan the kharif (summer) production in 2010.

Expecting the economy to grow by 7.5 per cent this year, Dr. Singh expressed happiness that the government maintained a growth rate of 6.7 per cent in the first year of the global crisis in 2008-09 and was able to protect the “inclusiveness” of the growth rate to a large extent.

Mission on pulses

Enumerating the steps taken to control prices, the Prime Minister admitted that the prices of pulses had risen sharply, mostly due to supply constraints. To address the issue, a National Mission on Pulses was being set up. The imported yellow peas could be a substitute for traditional pulses.

Urging the States to remove all impediments to processing imported raw sugar to augment availability, he asked them to assess the role of the State advised prices for sugarcane in the high prices of sugar.

Union Agriculture and Food Minister Sharad Pawar urged the States to cooperate and coordinate with the Centre to fight the “battle against rising prices,” both as a short-term and long-term strategy.

Prime Minister to lay foundation stone for power project in AP

Prime Minister Manmohan Singh will soon lay foundation-stone for the Rs. 6,000 crore power equipment manufacturing plant at Mannavaram in Andhra Pradesh, Union Minister for Heavy Industries Vilasrao Deshmukh said on Monday.

NTPC-BHEL Power Projects Pvt. Ltd., a joint venture between National Thermal Power Corporation and Bharat Heavy Electricals would build the facility at a cost of Rs. 6,000 crore at Mannavaram near temple-town Srikalahasthi in Chittoor district.

The Prime Minister was originally scheduled to lay the foundation-stone for the project on September 6 last year but it was put off following the death of then Chief Minister Y.S. Rajasekhara Reddy.

The State government had allotted 750 acres of land at Mannavaram for the project at a nominal price of Rs 100 per acre as it would provide direct employment to 6,000 besides indirect employment to over 25,000 people.

Deshmukh, who presented a cheque for Rs. 2.5 crore to the Andhra Pradesh Chief Minister’s Flood Relief Fund on behalf of BHEL said, there were no plans to shift the project from the State owing to the Telangana agitation and the Prime Minister would lay the foundation stone soon.

The first phase of the NTPC-BHEL project is expected to be ready by 2011-12 and the second phase by 2013-14.

The NTPC-BHEL project would be much bigger than the three-decade old Ramachandrapuram unit of BHEL, which has only 200 ancillaries offering employment to about 5,500. The Mannavaram project would enable setting up of over 400 ancillary units.

BHEL Chairman and Managing Director B.P. Rao, Rajya Sabha member T. Subbirami Reddy and others were present on the occasion.