Decision on oil price hike put off

September 11, 2012

ministr

New Delhi, September 11: A meeting of the Cabinet Committee on Political Affairs (CCPA), which could have decided on raising diesel and cooking fuel prices, was today postponed even as Oil Minister S Jaipal Reddy said the price increase was "unavoidable".

CCPA, which is headed by Prime Minister Manmohan Singh and includes ministers from allies of the UPA alliance, was scheduled to meet this evening but it was postponed without assigning any reason or fixing a new date.

Reddy said although the increase in diesel, cooking gas (LPG) and kerosene prices was not listed on the agenda, CCPA could have discussed the issue based on the revised note on the subject that his ministry had circulated to its members yesterday.

"As I said before, however painful and difficult the increase in price of oil product may be, increase is unavoidable. (To) what extent can consumer take (it) is another matter," he told reporters after meeting Finance Minister P Chidambaram before the announcement of CCPA meeting being postponed was made.

The double whammy of rising input cost (crude oil prices) and fall in value of rupee, which has made imports costlier, would mean that oil PSUs would end the fiscal with a huge Rs 1.88 lakh crore revenue loss on selling fuel below cost, he said.

"If it (price hike) is not taken up today, decisions may have to postpone by few days.

However I would like to tell the people (that) the increase in price is unavoidable. We will have to perform our unpleasant duty," Reddy said.

Diesel and cooking fuel rates have not been revised since June last year even as oil firms also sell deregulated petrol at a price which is almost Rs 6 a litre less than its cost.

"I can't say to what extent price rise will be. If I had the power it would had been done yesterday. I don't know if it will happen today or tomorrow or a week later," he said.

Reddy said he had yesterday circulated an updated version of a note detailing the crisis created by the rise in crude oil prices and fall in value of rupee against the US dollar to members of the CCPA.

Besides the Prime Minister and Chidambaram, the CCPA includes Home Minister Sushilkumar Shinde, Defence Minister A K Antony, NCP leader and Agriculture Minister Sharad Pawar, Telecom Minister Kabil Sibal and Railway Minister Mukum Roy.

"We had circulated a note to all members of CCPA about the problem of increasing under-recoveries (revenue loss on fuel sales)... the under-recoveries will exceed Rs 1.88 lakh crore (this fiscal)," he said. "And prices (are) going up further at the global level; rupee is not softening."

On his meeting with Chidambaram, Reddy said he had "routine interactions" on various proposals but declined to elaborate.

"We discussed the figures relating to under-recoveries," he added. PSU oil firms are losing a record Rs 560 crore per day on the sale of regulated diesel and cooking fuels, and another Rs 16 crore a day on petrol.

They are losing about Rs 6 per litre on sale of petrol, a commodity which was freed from government control in June 2010 but whose rates haven't moved in tandem with the cost.

They sell diesel at a loss of Rs 19.26 a litre, kerosene at Rs 34.34 per litre and domestic LPG at Rs 347 per 14.2-kg cylinder.

"I can't take decision (on raising prices) only on the basis of economic facts. We are operating in a political economy. We will have to take a balanced view," he said.

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Agencies
January 24,2020

New Delhi, Jan 24: The government's plan to sell national carrier Air India may face political and legal headwinds with senior BJP leader Subramanian Swamy raising the red flag against the decision.

Days before the launch of bidding process by inviting Expressions of Interest (EoI) from potential suitors, Swamy has warned against such move, saying the issue was currently being discussed by a Parliamentary panel.

"Right now, it (Air India disinvestment) is before the consultative committee and I am a member of that. I have been asked to give a note which will be discussed in the next meeting. They can't go ahead without that," Swamy told media.

"If they do, I will go to court. They know that too," he cautioned.

A vocal opponent of Air India privatisation, Swamy had earlier suggested to list 49 per cent of Air India shares on stock exchanges while government holds 51 per cent in the carrier, as an alternative to selling its entire stake to private companies.

It has been reliably learnt that the Rajya Sabha member had expressed reservations over privatisation of Air India at the meeting of a Parliamentary consultative committee earlier this month.

After its failed first attempt, the Modi government has shown great zeal this time to sell Air India. It is set to offer a sweetened deal to potential buyers this time around by removing a large chunk of the debt and liabilities from the airline’s books.

Aviation Minister Hardeep Singh Puri had earlier said that Air India will be shut down, in case the disinvestment exercise is not successful.

Sources told media that the preliminary information memorandum (PIM) inviting EoI has been tentatively scheduled to be unveiled on January 27.

Air India is proposed to be sold along with its subsidiary Air India Express and ground-handling joint venture company Air India Singapore Airport Terminal Services Ltd (AISATS) in which it has 50 per cent stake.

Air India on January 10 came out with a tender for engaging aircraft asset management companies for carrying out technical audit of its entire fleet.

A Ministerial panel on Air India chaired by Home Minister Amit Shah on January 7 approved the draft EoI and a share purchase agreement (SPA) for the airline's disinvestment.

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Agencies
June 2,2020

Lucknow, Jun 2: Bahujan Samaj Party chief Mayawati on Tuesday said protests in the US after the death of George Floyd, an African-American man, is a clear message to the world that a common man's life has value.

She said this is also guaranteed by the India Constitution, but the governments don't follow it, resulting in the current plight of migrants workers.

Floyd, a 46-year-old restaurant worker from Houston, died in Minneapolis on Monday after a white police officer pinned him to the ground. Video footage showed the officer kneeling on Floyd's neck as he gasped for breath, sparking widespread protests across the US.

"Floyd's killing by police and the 'Black lives matter' agitation in the US have given a clear message to the world that a common man's life has value and it should not be taken for granted," Mayawati said in a tweet in Hindi.

"India's constitution guarantees independence, security, self-respect and pride and governments should give special attention to it. If it was followed, crores of migrants labourers would not have to witness such bad days," she added.

She also demanded better coordination between states to check the spread of coronavirus and said Centre should intervene.

"While coronavirus patients are rising, there is lack of coordination between states and with the Centre, and allegation and counter-allegations are going on and sealing of state borders is unjustified and it is weakening the fight against the virus.  The Centre should intervene," she said in a separate tweet.

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News Network
January 12,2020

Patna, Jan 12: Prashant Kishor, national vice-president of the Janata Dal (United), a key ally of the BJP-led NDA, has thanked Congress general secretary Priyanka Gandhi and former AICC chief Rahul Gandhi for their support in opposing CAA (Citizenship Amendment Act) and NRC (National Register of Citizens).

Perceived as one of the closest associates of Bihar Chief Minister Nitish Kumar, who is also the party’s national president, PK (as Prashant is fondly called) also assured the two top Congress leaders that the contentious legislation would not be implemented in Bihar where JD (U) is ruling the State with the support of the BJP.

“I join my voice with all to thank #Congress leadership for their formal and unequivocal rejection of #CAA_NRC. Both @rahulgandhi and @priyankagandhi deserve special thanks for their efforts on this count….also would like to reassure to all – CAA/NRC won’t be implemented in Bihar,” tweeted PK on Sunday.

The development assumes significance as a day back, the Congress Working Committee (CWC) meeting, chaired by Sonia Gandhi, had strongly opposed CAA/NRC/NPR as it was aimed at “sinister design of the present regime to divide Indian people into religious lines.”

The latest tweet by PK is also being seen as a rebuff to the BJP, which again recently reiterated that “the BJP should project its own chief ministerial candidate during the 2020 Bihar Assembly elections.”

The JD (U) had taken umbrage over such provocative statements by BJP leaders and asked the saffron camp to rein in its ‘loudmouths’ as BJP chief Amit Shah had already made it clear that the next Assembly polls in Bihar would be fought under the leadership of Nitish.

Of late, PK has been quite vocal about his opposition to the Centre’s policies, particularly the contentious issues of NRC and CAA. Besides, he even dubbed senior BJP leader Sushil Modi as the man who became Bihar’s Deputy Chief Minister due to ‘circumstances’ as the BJP was decisively decimated during the 2015 Assembly elections.

Nitish never reprimanded PK for his jibe against Modi, thereby giving rise to speculations whether Bihar was again heading for a political churning ahead of Assembly polls slated for October this year.

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