From car and phones to cooking gas and diesel, prices likely to shoot up

July 9, 2013

Prices_shoot_upNew Delhi, Jul 9: Get ready to pay more for cooking gas and diesel, where the government may allow oil marketing companies to raise prices by at least Re 1 every month to pare their losses following the steep rupee depreciation.

The impact of the near 12% fall in the rupee against the dollar since the financial year began in April will translate into higher prices for almost everything - from imported toys and cars to imported food products and mobile phones. In any case, cost will rise even for domestic manufacturers who depend on imported raw material. A higher price of imported coal will make electricity more expensive. Similarly, companies such as Steel Authority of India Ltd will find it tough not to pass on the higher burden given that coal will be costlier.

Edible oil price may provide some relief against the backdrop of the gloom as global prices have fallen nearly 30% and the rupee's depreciation will not impact this critical kitchen ingredient.

But consumer electronics players such as Samsung and Sony are in the process of raising prices by up to 5%. Even battery maker Exide has blamed the sliding rupee for increasing prices.

Unlike most industry segments, where prices are unregulated, oil companies are staring at the prospect of a Rs 1.2 lakh crore hit because of the rise in crude import costs. As a result, they are making a case for a steep increase in prices. Alternatively, they said, the government should take a larger share of the burden. While the cost of crude for Indian refiners is $103 a barrel, in rupee terms, it translates into a record cost of around Rs 6,250 a barrel.

At the start of the month, despite the monthly 50 paisa hike in diesel price, oil companies were losing Rs 8.60 on every litre of the motor fuel. Similarly, the impact on a subsidized cooking gas cylinder was nearly Rs 380.

"The 50 paisa increase worked for three months, but it doesn't work any longer. Cooking gas price should be increased by Rs 100 a cylinder to provide some relief. Else, the oil ministry wants the government to bear the burden," said an officer, adding that a decision was not taken yet.

Informal talks have been held in the government and the petroleum ministry is looking at the numbers for the June quarter.

While a price hike will provide comfort to oil firms, a sharp increase in diesel price will result in accelerating inflation, which the government may not be very keen on given the spurt in vegetable prices and elections in five states, followed by the 2014 general elections.

At the same time, the government will be under pressure to raise prices due to the stress on public finances, which will only get accentuated by the sharp depreciation of the rupee. The government is left with only Rs 20,000 crore to pay as oil subsidy this year and is expected to provide more to fund the gap. It will also have to pay a higher subsidy to fertilizer companies as imports will be more expensive.

All this will undo the work done by the government to contain the fiscal deficit and expose the country to the possibility of a ratings downgrade, which will put India's sovereign rating into junk grade.

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News Network
March 2,2020

New Delhi, Mar 2: As communal violence spiked in north-east Delhi earlier this week, Hindu, Muslim and Sikh residents of a colony came together and stood guard against frenzied mobs which ran riot in nearby areas vandalising homes, shops and torching cars.

They have not let their guard down even as the situation is limping back to normalcy following four days of violence that has claimed at least 42 lives and left over 200 injured.

The B-Block colony in Yamuna Vihar has a Hindu-dominated Bahjanpura on one side and Muslim populated Ghonda on the other.

People from all faiths in the locality sit outside their homes at night and deal with any suspected outsider, Arib, a dentist in his 30s, said.

"It is the sloganeering by mobs that causes panic in the dead of night. Such slogans are from both sides and we hear groups of people moving forward towards our area.

"This is where we let the Muslim locals deal with Muslim groups and Hindu residents deal with Hindu groups coming from outside," he said.

Businessmen, doctors and people working at government offices stuck together as violence reached its crest on Monday and Tuesday, and have been guarding the locality round the clock.

Earlier, the locals had claimed inadequate police deployment in the area, but were satisfied as patrolling by security personnel increased in the last two days.

Charanjeet Singh, a Sikh who owns a transport firm, said residents have ensured that not too many people gather to guard the colony at night. It has been decided not use sticks or rods, an idea which seems to have worked in maintaining peace, he said.

"I was 10 years old when we came to this locality from Uttar Pradesh's Meerut in 1982. There were riots in 1984 and tension in 2002, but even then our area remained peaceful. We have always been united and that is the way we have helped each other," Singh, who is now in his 50s, told PTI.

Faisal, a businessman in his 30s, said after two days of major violence, there was palpable tension in the area. "Nobody could sleep in the neighbourhood even on Wednesday and Thursday when the situation was brought under control," he said.

Faisal said around 4 am on Wednesday, three to four miscreants had torched a car, but were chased away by vigilant residents. They raised an alarm and others gathered, saving other vehicles parked nearby from being damaged, he added.

On the idea of not keeping sticks while guarding B-Block, Singh said, "Violence begets violence, crowd begets crowd. We thought if somebody would see sticks or rods in our hands from a distance and large crowds standing guard, it is likely they would want to come prepared. This could fuel violence."

"Now, if there is some young man returning late in the night, we identify if he belongs to our area. If not, we normally inform him about the situation and guide him to his destination, if required," he added.

Seventy-year-old V K Sharma said people in his colony never had any trouble with each other, as he blamed "outside elements" for the violence in north-east Delhi.

"Some people have some problem with symbols. If they find a particular religion's symbol on a shop, home or a car, they vandalise it.

"This is on both sides, Hindus as well as Muslims. But not all people in all religion are like that. There are good people who outnumber these handful people involved in violence," he said.

The violence happened for two days but it would take months for fear to subside, Sharma said, as he took out his two granddaughters, aged nine and two, out for ice cream.

"I cannot reduce the tension outside my home, but at least I can make these kids feel good by reducing their craving for ice cream,” he added.

Colony resident Shiv Kumar, a property consultant, and Wasim, a government official, said they too were members of this voluntary guards' team of the colony which stays up at night to fend off miscreants.

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News Network
May 11,2020

May 11: Congress leader Rahul Gandhi on Monday said many states were amending labour laws, but the fight against the novel coronavirus pandemic cannot be an excuse to exploit workers, suppress their voice and crush their human rights.

Gandhi said there cannot be any compromise on the basic principles by allowing unsafe workplaces.

"Many states are amending labour laws. We are together fighting against corona, but this cannot be an excuse to crush human rights, allow unsafe workplaces, exploit workers and suppress their voice," he said.

"There cannot be any compromise on these basic principles," he added.

Congress leader Jairam Ramesh also said it would be dangerous and disastrous to loosen labour, land and environment laws in the name of economic revival and stimulus.

"In the name of economic revival and stimulus, it will be dangerous and disastrous to loosen labour, land and environmental laws and regulations as the Modi govt is planning.

"The first steps have already been taken. This is a quack remedy like demonetisation," Ramesh tweeted.

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News Network
May 7,2020

May 7: Accusing the BJP government in Karnataka of "medieval barbarism" and treating migrants as worse than "bonded labourers", CPI(M) general secretary Sitaram Yechury on Wednesday hit out at the state's decision to stop workers from returning to their homes in different parts of the country citing requirements of the construction sector.

The Karnataka government has withdrawn its request to the railways to run special trains to ferry migrant labourers to their home states, hours after builders met Chief Minister B S Yediyurappa to apprise him of the problems the construction sector will face in case they left.

"This is worse than treating them as bonded labour. Does the Indian constitution exist? Are there any laws in the country? This BJP state government is throwing us back to medieval barbarism. This will be stoutly resisted,” Yechury said in a tweet.

The railways is running Shramik Special trains to ferry to their home towns migrants who were stranded at their places of work during the lockdown.

So far, it has run more than 115 such trains.

The Principal Secretary in the Revenue Department N Manjunatha Prasad, who is the nodal officer for migrants, had requested the South Western Railways on Tuesday to run two train services a day for five days except Wednesday, while the state government wanted services thrice a day to Danapur in Bihar. However, later, Prasad wrote another letter within a few hours that the special trains were not required. Several migrants in the city were desperate to return home as they were out of jobs and money.

Yechury also lashed out at the central government over reports that it owed states and industry Rs 3 trillion and accused the centre of shifting the burden of fighting the pandemic to the state governments.

“While shifting the entire burden of fighting the pandemic on to the State governments, Modi government is not even paying their legitimate dues. After November 2019, Centre has not paid the GST compensation dues for the rest of the financial year, i.e., March 2020.

“Modi government has the right to loot while crores of people & States are left with nothing but the right to starve?,” he tweeted.

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