UPA allies back reforms, but concerned over diesel price hike

The United Progressive Alliance’s (UPA) partners supported the Government’s reform measures, but expressed concern at the diesel price hike and the cap on the subsidised LPG cylinders.

Two days after the Congress Working Committee had endorsed the decisions, a meeting of the UPA’s coordination committee was held here on Thursday. The allies asked the Centre to step up the campaign among people on the recent decisions, including foreign direct investment in retail.

The Nationalist Congress Party and the National Conference have already supported FDI in retail. The DMK and the Indian Union Muslim League, which are opposed to FDI retail in Tamil Nadu and Kerala, supported the policy in the meeting.

“States have the freedom to choose the policy,” a UPA leader said.

The allies, however, expressed concern over the diesel price hike and cap on subsidised cooking gas cylinders. They told the Government that such decisions could have been avoided.

Backing for reforms from allies was crucial for the Government, which is being attacked by the Opposition. The participation of DMK in the Opposition’ Bharat Bandh against FDI retail had upset the Congress leadership.

Briefing reporters after the meeting, Finance Minister P. Chidambaram said the UPA reviewed the situation following the number of decisions announced in the last 10 days.

“There was general satisfaction that many of the steps taken by the Government, although some of them would put a burden on the people, have been welcomed by stakeholders as necessary and unavoidable,” he said.

He said the meeting, chaired by UPA Chairperson Sonia Gandhi, also discussed the need to do more reforms. He said, by and large, the message had gone to the people that the reform measures were unavoidable. “We thank the people for their understanding,” he added.

jigeesh.am@thehindu.co.in

COMMENT NOW