Allies force govt to postpone hikes

Allies force govt to postpone hikes
DEVESH KUMAR

NEW DELHI, FEBRUARY 23: The Atal Behari Vajpayee Government has deferred by two weeks the proposed hike in the prices of petroleum-related products such as LPG, diesel and kerosene under pressure from its allies, notably the Telegu Desam Party, the Trinamool Congress and the Indian National Lok Dal.

While TDP leader and Andhra Pradesh Chief Minister Chandrababu Naidu took up the matter personally with Prime Minister yesterday, Trinamool leader Mamata Banerjee and INLD chief Om Prakash Chautala are believed to have argued strongly against the move at this evening's meeting of the National Democratic Alliance.

The Union Cabinet, in its meeting yesterday, had decided to increase the prices of these petroleum products in order to bridge the ever-burgeoning oil pool deficit. The hikes were supposed to be announced on February 24, a day before the presentation of the rail budget.

Having got wind of the government decision, Naidu brought up the matter during his meeting with Vajpayee yesterday. While agreeing with the government's compulsions, he is learnt to have urged the Prime Minister to defer the proposed hikes by two weeks in view of the ensuing elections to the urban local bodies in his state.

Some 200 municipal corporations are going to polls early next month, and any hike in the prices of LPG and diesel would clearly antagonise the urban voters, Naidu reportedly told the Prime Minister.

Mamata too made similar plea today, declaring passionately that such a decision will hurt the common man. She found support from Chautala and Union Social Justice Minister Maneka Gandhi.

``In deference to the wishes of the Andhra Pradesh Chief Minister, the announcement on the proposed hikes have been deferred by a fortnight,'' a senior Cabinet Minister told The Indian Express. ``The decision was taken yesterday itself,'' he added.

In this evening's meeting of NDA partners, Prime Minister Vajpayee and Finance Minister Yashwant Sinha are said to have underlined the domestic as well as international compulsions behind some of the harsh measures that are likely to be outlined in this year's general budget.