The Hindu : Tamil Nadu / Chennai News : Only limited role for State in checking prices: Anbazhagan

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Only limited role for State in checking prices: Anbazhagan

Special Correspondent

To certain extent, may be up to 40 per cent, it can be contained

CHENNAI: The State government has only a limited role in containing prices, Finance Minister K. Anbazhagan told the Assembly on Friday.

Wrapping up a debate on the first supplementary statement of expenditure, he said it was impossible to control price rise completely. To a certain extent, may be up to 40 per cent, it could be contained. The administration had to intervene to ensure that there was no famine. Price rise had prevailed even under regimes that had a special concern for the poor. It was a feature when Kamaraj was Chief Minister. It was happening in Kerala and West Bengal, where the Left was in power.

Efforts being taken by the Centre and the Reserve Bank of India to contain prices had started yielding results. There were reports that inflation was down to single digit level.

It was with the purpose of providing relief to people that Chief Minister M. Karunanidhi reduced the price of rice given through the public distribution system from Rs.3.50 a kg to Rs.2 [in May 2006] and Re.1 a kg now, Mr. Anbazhagan said.

The food subsidy Bill of Rs.1,950 crore had gone up by Rs.100 crore.

The government’s decision to absorb a portion (Rs.30) of the increase in price of cooking gas cylinder for single connection holders would cost Rs.80 crore.

Lively debate

Earlier, O. Paneerselvam (All India Anna Dravida Munnetra Kazhagam), Deputy Leader of the Opposition, and Arcot N. Veeraswami, Electricity Minister, were engaged in a lively discussion on the power position in the State.

The AIADMK leader argued that when his party was in power, there was no power cut. Coupled with the peak hour restrictions, the actual quantum of power cut was 72 per cent for high tension industry and 52 per cent for low tension units.

The Minister rejected Mr. Paneerselvam’s charge that there were irregularities in procurement of coal. To ensure a fool-proof arrangement, the DMK regime had decided to purchase coal through MMTC, a Central enterprise.

He said the power supply position was normal till a year ago and the State was selling power to Maharashtra and Punjab.

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