The Hindu Business Line : Pranab rules out rollback of retail fuel price hike

Kolkata, June 14 The Centre is not considering any roll back of the oil price hike, the External Affairs Minister, Mr Pranab Mukherjee, said here on Saturday.

“There is no question of any roll back,” Mr Mukherjee observed, pointing out that the rise in global crude prices has led to huge under recoveries of the oil marketing companies. The under recoveries in 2008-09, he estimated, would be about Rs 225,000 crore. He was speaking at the sidelines of the annual general meeting of Merchants’ Chamber of Commerce here.

“The under recoveries in 2005-06 amounted to Rs 40,000 crore, rising to Rs 49,000 crore in the next year (2006-07) and further to Rs 70,000 crore in 2007-08,” he said pointing out that these losses could not be kept under the carpet. The Minister however conceded that the recent hike in the prices of petroleum products would fuel inflation.

Mr Mukherjee also ruled out separate Gorkhaland saying, “the Centre is not in favour of having any separate state and we do not want dismemberment of any state.” However, the Centre would be open to talks with the Gorkha Janamukti Morcha, though without any preconditions, he made it clear.

Referring to the controversy surrounding acquisition of land for purpose setting up industrial units, Mr Mukherjee expressed the view that the State Government should share its road map of industrialisation with the respective members of society. “While this is essential in a participatory democracy, the mindset of the people should also change,” he said. “The industry and roads cannot be built in the air, but then judicious use of land is also important.”

Global co-operation

India, according to the External Affairs Minister would not play the role of a spoiler at the G-8 summit at Hokkaido in July. However, the developed countries must stop market-distorting subsidy on agricultural products, he said.

The Centre would also work towards larger international co-operations with countries such as Brazil, Russia and neighbouring countries of China and Pakistan, he said. “We a have problem with China in regard to demarcating our boundaries, which has to be resolved, but this does not stand between our trade relations,” he said, adding that India would easily exceed the revised target of $60 million of trade with China of by 2010. “Kolkata is going to be the hub and the centre of the look-east policy,” he said.

The West Bengal Chief Minister, Mr Buddhadeb Bhattacharya, in his address to the members of the Chamber, said the Government has learnt from the experiences of Nandigram and Singur and henceforth comprehensive rehabilitation packages would be offered prior to acquisition of lands for industrial purposes.