Indian Ministers Withdraw Resignations as Oil Price Hike Row Cools
October 7, 2000 - 0:0
NEW DELHI Mamata Banerjee, India's recalcitrant railways minister who quit in protest against a recent fuel price hike, withdrew her resignation Friday to end a week of political uncertainties, AFP reported.
Banerjee's protege, Ajit Kumar Panja, also agreed to return to his duties as minister of state for external affairs, the cabinet-ranking Banerjee told a news conference in Calcutta.
Banerjee, whose regional party is a key partner in Vajpayee's ruling coalition, said she decided to resume work following an assurance from the premier that his government will review the June 30 oil price hikes.
Banerjee and Panja both quit a day after Vajpayee's multiparty government ordered an 18-percent increase in the prices of petrol, kerosine, cooking gas, diesel and aviation fuel to offset galloping global oil prices.
"The prime minister has given me a written assurance to relook and take appropriate action on his return from Bombay after his knee surgery (slated for October 10).
"Hence, I am resuming my duty as railway minister from today," said the fiery politician, who continues to remain adamant on her demands for a partial rollback on the oil price increases.
Petroleum Minister Ram Naik has repeatedly warned that any roll back in petroleum product prices would increase the country's oil pool deficit.
Naik argues the oil import bill for fiscal year ending March 2001 was around 230 billion rupees ($5.1 billion), of which only $1.7 billion was being passed on to consumers.
India's oil import bill topped $10.5 billion for the previous fiscal year ended March 2000, and experts said the current bill could overshoot India's target to hover around $7 billion.
India's trade deficit jumped 26% in the first quarter of the current fiscal year to touch almost $3 billion, partly on account of fuel imports.
Successive governments had been offering hefty concessions of 80 rupees on 10 liters of kerosine, 50 rupees on 10 liters of diesel and 170 rupees on 30-kilo bottles of cooking gas.
The subsidies annually gobble up $4 billion of state revenue.
Banerjee's protege, Ajit Kumar Panja, also agreed to return to his duties as minister of state for external affairs, the cabinet-ranking Banerjee told a news conference in Calcutta.
Banerjee, whose regional party is a key partner in Vajpayee's ruling coalition, said she decided to resume work following an assurance from the premier that his government will review the June 30 oil price hikes.
Banerjee and Panja both quit a day after Vajpayee's multiparty government ordered an 18-percent increase in the prices of petrol, kerosine, cooking gas, diesel and aviation fuel to offset galloping global oil prices.
"The prime minister has given me a written assurance to relook and take appropriate action on his return from Bombay after his knee surgery (slated for October 10).
"Hence, I am resuming my duty as railway minister from today," said the fiery politician, who continues to remain adamant on her demands for a partial rollback on the oil price increases.
Petroleum Minister Ram Naik has repeatedly warned that any roll back in petroleum product prices would increase the country's oil pool deficit.
Naik argues the oil import bill for fiscal year ending March 2001 was around 230 billion rupees ($5.1 billion), of which only $1.7 billion was being passed on to consumers.
India's oil import bill topped $10.5 billion for the previous fiscal year ended March 2000, and experts said the current bill could overshoot India's target to hover around $7 billion.
India's trade deficit jumped 26% in the first quarter of the current fiscal year to touch almost $3 billion, partly on account of fuel imports.
Successive governments had been offering hefty concessions of 80 rupees on 10 liters of kerosine, 50 rupees on 10 liters of diesel and 170 rupees on 30-kilo bottles of cooking gas.
The subsidies annually gobble up $4 billion of state revenue.