EGoM Meeting

    On 7th June, 2010, in the afternoon, under the chairmanship of Union Finance Minister Mr. Pranab Mukherjee, empowered group of Minister’s (EGoM) meeting held to discuss on the recommendations of Kirit Parekh committee, and it was hoping that if proposal of Kirit Parekh committee accepted then prices’ of petrol, diesel and liquefied Petroleum Gas (LPG) bound to shoot somewhere approximately 3 to 5 rupees of Petrol, 3 to 5 rupees of Diesel and 20 to 50 rupees of LPG. EGoM constitutes of -

• Mr. Pranab Mukherjee – Union Finance Minister
• Mamta Benerjee – Union Railway Minister
• Mr. Sharad Pawar – Union food and Agriculture Minister
• Mr. M.K. Alagiri – Union Chemical and Fertilizer Minister
• Mr. Kamalnath – Union Transport Minister
• Mr. Sushil Kumar Shinde – Union Power Minister
• Mr. Murli Deora – Union Petroleum Minister

EGoM not only had to decide on to the recommendations of committee but also on to freeing petroleum prices from government control, but because of absence of four minister’s it was delay until next meeting of EGoM which is suppose to be held on next week, as per Mr. Deora. Certainly price increase is delay for time being, but it is going to increase in coming days, and not only it will effect badly on to the budget of common people but also work as ghee in the fire, as public is crying for failure of government on increasing prices’ and with increase of diesel price every sector will feel the heat of increase in input cost, as main source (approximately more then sixty percent) of goods from one part of country to other part is done by Trucks and their source of energy is diesel. On one hand government is issuing statements in media that soon inflation will be control by government but the steps and action they are taking making mockery of their own announcements.
     If Prices’ will increase in coming days, then it will hit only average common Indian, who earn on daily basis of their livelihood, and with increase of petroleum prices it will reduce the quantity and quality of foods from their plates, as political parties after agitation, bandh and strike for few days will look for another issue, to get political mileage, but it wont left much effect on government and if they increase prices of three to five rupees and considering the anger and agitation in the country, then will roll back one or two rupees and still successfully increase some prices’, certainly it will be in the domain of inflation. When news brook up of EGoM meeting on Petroleum Products recommendations of Kirit Parekh committee on Monday, opposition parties warn government to avoid price hike of petroleum products otherwise across country they agitate and pressurise them to roll back the price.
    Before facing protest of opposition parties Government has to get nod from its allies also and in present scenario it looks very much unlikely that TMC and DMK accept the proposal, plus ministry of railway whose in charge is Mamta Benerjee wont give her nod as it will directly effect on her ministry’s operations, plus she is riding on the victory of civic polls in West Bengal and also eyeing next year’s assembly poll in West Bengal, so in next meeting of EGoM it will be interesting to see what will be outcome of meeting.
    The way Government is making policies ,working certainly they are not public friendly, recently they get 6.7 Trillion rupees from the auction of 3G Spectrum license, if they need more money for their operation then they can on priority basis talk with Swiss authorities where as per rough estimates Indian have 1.4 trillion dollar, but if they keep on ignoring other ways of money to come in their coffer, and keep on making policies which are inflation friendly and anti public, then they are inviting public anger and opposition parties will eager to cash it by supporting and agitating, it is by no mean good for government.

P.S. : Today I am posting blog at 4.12 p.m., because the area I am residing, there was power cut from 8.00 a.m. in the morning until 4 p.m. and it was also without prior information.