Partial roll-back of petro prices will reduce burden -- Manmohan

Partial roll-back of petro prices will reduce burden -- Manmohan
PRESS TRUST OF INDIA

NOV 18: Former Finance Minister Manmohan Singh on Saturday supported partial roll-back of hiked prices of pertoleum products saying the move was necessary to mitigate the adverse impact on the commonman.

"There is definitely some scope of an adjustment in the prices of kerosene and LPG to reduce the distress of the common people," Singh told PTI on the sidelines of a mid-year review of the Indian economy by the National Development Council here.

Asked if the government's decision to roll-back prices would convey a wrong signal, Singh quipped "the present government is a government of roll-backs."

The ruling National Democratic Alliance is expected to take a decision on the issue of roll-back of the hiked petro-prices at its meeting to be held in the capital tomorrow.

Alliance partner Trinamool Congress leader Mamata Banerjee has been demanding a partial roll-back in the prices of Petroleum products while the Petroleum Minister Ram Naik has said that any final decision on the issue rests with the Prime Minister.

On the issue of the cabinet's recent decision to reduce the government equity in public sector banks to 33 per cent the former Finance Minister said the decision was an "ill-thought move".

"I fail to understand how the government expects to retain the public sector character of these banks by reducing its stake to 33 per cent," he said.

Singh further pointed out that prices of the shares of these banks were already selling at a discount and said, "there will be no takers for these banks."

The decision of the government will lead to unnecessary tension in the country, he said. The government instead of reducing its equity in the public sector banks should revitalise them and take steps to improve their performance, he said.

Partial disinvestment of the public sector enterprises is not the simple solution to the ills which plague the economy. Unless the savings of the public sector reach anywhere near the levels of the 1970s the country will not be able to achieve a GDP growth rate of seven to eight per cent, he added.

Singh said "enough efforts are not being made to increase savings and investment." "There is an urgent need to churn out surplus from the public sector and plough the proceeds into providing a social safety net for the poor including better health, education and a healthy environment," Singh said.