TDP blames Centre for price hike

HYDERABAD, APRIL 8: The Telugu Desam Party, an important ally of the National Democratic Alliance Government in Delhi, has squarely blamed...

HYDERABAD, APRIL 8: The Telugu Desam Party, an important ally of the National Democratic Alliance Government in Delhi, has squarely blamed the Centre for indirectly forcing states to hike the prices of essential commodities.

"Given the precarious financial situation of the State, we are not in a position to absorb the increase effected by the Centre. Therefore, we are constrained to pass on the burden to the consumers," party leaders said. They were referring to the Centre hiking the issue price of rice given to poor families which forced the State to up the price of rice distributed to white card holders under the subsidised programme.

The TDP politburo, which was chaired by Chief Minister N Chandrababu Naidu, reviewed the financial condition of the State and the impact of the proposed hike in the price of subsidised rice and power tariff on the common man.

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The State Cabinet has decided to increase the subsidised rice price from Rs 3.50 per kg to Rs 5.50 or Rs 6. Similarly, power tariff is being hiked by 15 per cent in respect of all categories of consumers to net an extra revenue of Rs 810 crore to the Transmission Corporation.

Naidu, who briefed the party leaders on the circumstances which prompted the Government to hike the rice price as well as power tariff, asked them to explain the reasons to the people and counter the Opposition’s charge.

Briefing mediapersons later, MP Ummareddy Venkateswarlu, Rajya Sabha member P Prabhakar Reddy and party spokesman R Chandrasekhar Reddy criticised the BJP-led NDA government for imposing one burden after the other on the people and thus forcing the states to follow suit. "States cannot sustain the burden from the Centre beyond a point. They (states) have to pass it on to the people," they pointed out.

The fifth Central Pay Revision Commission’s report, hike in the prices of diesel, gas, fertiliser and rice are some of the decisions taken by the Centre in the last few months which had imposed an unbearable burden on states, Venkateswarlu explained.

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Moreover, the Centre had been insensitive to the persistent demand made by Andhra Pradesh that the Lakdawala committee’s report on determining the size of the population below the poverty line (BPL) should be reviewed. The panel’s report reduced the BPL population from 39 to 22 per cent and the rice quota to the State has been accordingly slashed.

Asked why the TDP was not mounting pressure on the Vajpayee government to rollback the prices, the TDP leader said: "We have been working in that direction. But you cannot expect us to pull down the government on every issue".