New Delhi, June 11
Prime Minister Manmohan Singh has warned that the economic situation in India could take a turn for the worse if global crude oil prices continue to soar and the country could even be faced with a financial emergency.

An anguished Prime Minister sounded this grim warning when former president of the Punjab Pradesh Congress Committee (PPCC) Shamsher Singh Dullo asked him to waive the loans of persons belonging to Scheduled Castes and Scheduled Tribes on the lines of the debt waiver given to farmers in the budget.

Dullo was accompanying a delegation of Punjab Congress leaders who had called on the PM yesterday to draw his attention to the unprecedented violence witnessed in the state during the recent local elections.

Punjab Congress sources said it was during the course of their conversation with the PM that Dullo came up with this demand. Although polite to a fault, the PM was apparently irked with this suggestion and went on to paint a grim picture of the country’s economic situation in view of the rising global crude oil prices.

He warned that if this current upward trend in the international market continues, the country could even be faced with a financial emergency, as it will become increasingly difficult for the country to meet its existing commitments.

Urging Congress leaders to appreciate the difficulties faced by the government, the PM said the country was faced with a very tough situation and this was not the time to indulge in one-upmanship or make irresponsible statements.

The matter, however, did not end here as Dullo persisted with his demand. Making a strong case for extension of a loan waiver for SCs, he said this should be considered sympathetically as these castes constitute a critical support base of the Congress.

On his part, the PM explained that Scheduled Castes would also benefit from the loan waiver as they were also farmers. Stating that SCs are largely landless labourers and share croppers, a bitter Dullo pointed out that the government only accedes to demands if people block trains and resort to dharnas. This remark, it is learnt, really upset the PM who told Dullo that the place for such comments was outside his office.

Drawing his attention to the violence witnessed in the recent local elections in Punjab, the Congress delegation said the home minister should either seek a report from the Governor or call the Chief Minister for an explanation.

Headed by PPCC chief Rajinder Kaur Bhattal, the delegation included Hanspal, Surinder Singla, Virendra Kataria, Rana Gurjit, Manish Tewari, Kewal Dhillon, Jassi Khangura, Tej Prakash Singh, Harnam Johar and Col Kambhoj.