Mon, 17 Sep 2012 20:37:13 GMT | By IANS

No rollback of diesel price hike, FDI in retail: Chidambaram

New Delhi: Finance Minister P. Chidambaram Monday said the government would not rollback its decision to allow foreign direct investments (FDI) in multi-brand retail and the hike in diesel price.

No rollback of diesel price hike, FDI in retail: Chidambaram (© Reuters)

Talking to mediapersons here, Chidambaram claimed that there was no threat to the United Progressive Alliance (UPA) government because of the reform measures announced last week.

"I don't think the government faces any threat...ultimately we will be able to convince our allies that what we have done is the best for the economy," the finance minister said. In a major step forward to give a push to reform agenda, the Manmohan Singh government last week decided to allow up to 51 percent FDI in multi-brand retail and opened up the aviation sector to 49 percent investment by overseas airlines.

The government has also announced the sharpest ever Rs.5 per litre or 12 percent increase in diesel price. Mamata Banerjee-led Trinamool Congress, a key ally of the UPA government, has asked the government to roll back the decisions.However, Chidambaram said the government would be able to convince its allies that the decisions have been taken under the difficult economic situations.

"We have done whatever was doable on diesel and LPG prices. A correction was also overdue on the under-recoveries on petrol prices," Chidambaram said.

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