M A I N   N E W S

Mamata, Panja quit over oil price

NEW DELHI, Sept 30 (UNI) — The high oil price drew its first blood in the ruling coalition as both Trinamool Ministers — Railway Minister Mamata Banerjee and Minister of State for External Affairs Ajit Kumar Panja — resigned today in protest against the government’s unilateral decision to increase the prices of petroleum products.

The announcement of the resignation, made at a press conference in Calcutta, came even as pressure mounted on the government over the price hike issue, with political parties, public organisations as well as industry associations all over the country today sharply criticising the hike.

“Despite being a partner of the NDA government, we have not been consulted regarding the price hike. This is not the first time. Such things have happened before”, “Ms Banerjee said at the crowded press conference.

Ms Banerjee said they would send their resignation letters to Prime Minister Atal Behari Vajpayee.

She, however, gave three days’ time to the NDA government to withdraw the enhanced prices of petroleum products. “If the Centre withdraws the enhanced prices within three days, we will reconsider our decision,” she said.

The Bharatiya Janata Party, however, justified the increase in oil prices, saying that the government had no alternative but to increase oil prices to reduce the mounting oil pool deficit.

Talking to newspersons, party Vice-President K. Jana Krishnamoorthy said the government, however, had taken measures to lessen the burden of the increase in oil prices by reducing custom and excise duties on crude oil and transport fuel.

Meanwhile, the Vajpayee government was taken by surprise by the sudden resignation of Ms Banerjee and Mr Panja even though the Trinamool Congress leaders had expressed their reservations on the hike in petroleum product prices.

Shocked Home Minister L.K. Advani refused to comment when he was informed that both Trinamool Congress leaders had resigned in protest against the sharp increase in petrol, diesel and cooking gas prices.

While expressing surprise over the development, Petroleum Minister Ram Naik said Ms Banerjee was part of the Cabinet decision, when the government had decided to increase the oil prices. The minister said she had expressed her reservations on the issue.

Several Cabinet ministers of the other constituents of the NDA were not present in today’s swearing-in-ceremony. These include Agriculture Minister Nitish Kumar, Communication Minister Ram Vilas Paswan, Industry and Commerce Minister Murasoli Maran and Heavy Industry Minister Manohar Joshi.

However, NDA Convener and Defence Minister George Fernandes attended the ceremony.

The government yesterday announced the hike in petrol and diesel prices by around Rs 3 a litre and of cooking gas by more than Rs 36 a cylinder.

Mr S.B. Mukherjee, who was inducted into the Council of Ministers today, also expressed surprise over Ms Banerjee’s decision.

Meanwhile, the CPI, Communist Party of India (Marxist-Leninist) — New Democracy and Delhi Pradesh Congress Committee (DPCC) have condemned the sharp hike in the prices of LPG which is being increased by Rs 36.20 to Rs 232.75 and that of kerosene by Rs 3 would adversely hit the common people.

Meanwhile, Petroleum Minister Ram Naik hinted at a further hike in the prices of liquified petroleum gas (LPG) over the next two years as it still enjoys a lot of subsidy.

Talking to a private television channel here today, Mr Naik disclosed that all these subsidies would have to be wiped out by March 31, 2002, when the administrative price mechanism (APM) regime would be over.

He said that the government was ready to take tough measures to bring domestic prices in line with those prevailing in the international markets.

He said we have to cut all subsidies on oil products, but keep only 15 per cent on LPG.

On the issue of present hike in prices, Mr Naik said as the crude oil prices were moving upwards globally, the government had no choice but to increase the prices.

Vajpayee rejects resignations

NEW DELHI, Sept 30 (PTI) — Prime Minister Atal Behari Vajpayee today rejected the resignations of Trinamool Congress Ministers Mamata Banerjee and Ajit Kumar Panja from the NDA government.

“The Prime Minister has rejected their resignations,” a Prime Minister’s Office spokesman said here, adding that they were being persuaded to withdraw their resignations.