Close on the heels of steep increase in diesel price and cap on supply of subsidised LPG, President Pranab Mukherjee on Monday said greater alignment of domestic rates with global prices was in the interest of both the consumers and the investors.

Inaugurating the 10th edition of Petrotech Oil and Gas Conference in New Delhi, Mr Mukherjee said that government is committed to adopt a time-bound programme to achieve this.

In an apparent reference to India's dependence on world markets to meet its energy needs, the President said that just like financial markets, the world energy markets are inherently global and interdependent, and no single country can isolate itself from the market.

AIR correspondent reports that the government had in June 2010 decontrolled petrol price and agreed to free diesel rates in a calibrated manner.

A steep 5.62 rupees per litre hike notwithstanding, diesel continues to be sold at a discount of 11.05 rupees per litre to its actual cost as international rates continue to rule high.

 The burden of subsidies on fuel, fertilizer and food have significantly increased on government on account of rise in international prices and increase in Minimum Support Price.

According to medium-term expenditure projections under the Fiscal Responsibility and Budget Management, in revised estimation of Budget for 2011-12, there was a provision of 2,08,503 crore rupees for major subsidies, which represents a growth of 26.7 per cent over 1,64,516 crores rupees in 2010-11.

It is projected that with suitable policy interventions the subsidy expenditure will reduce from 1.9 per cent of Gross Domestic Product, GDP in budget estimate 2012-13 to 1.6 per cent of GDP by 2014-15. This is critical for successful fiscal consolidation.

The fertiliser subsidy will reduced to 65,735 crore rupees in 2014-15. It was 67,199 crore rupees in 2011-12. However, the food subsidy will increase in 2014-15 to 95,000 crore rupees from 72,823 crores in 2011-12.

The subsidy on petroleum will be stabilized to 43,580 crore rupees, which was 68,481 crores rupees in 2011-12.

Finance Minister Pranab Mukherjee has said that India has signed treaties with 37 countries to know the details of black money stashed abroad. Addressing a meeting of Congress workers in Khargram in West Bengal on Sunday Finance Minister said all the money kept by Indians abroad is not black money. He said it might have been deposited by businessmen or business houses. The process will take time to know the exact amount.

Mr Mukherjee said the unrest in Syria and Libya had caused the increase in prices of petro products and fertilisers. He said the Potash was brought from these two countries but has now stopped due to political unrest there.

Finance Minister said the Centre's hands are tied to provide extra money to states as petro products and food need massive subsidy. 

He said the UPA government is committed to improving the country's socio-economic infrastructure and is taking steps in the direction. However, there are delays as Congress has to depend on allies and there are differences of opinion at times.

Referring to bad condition of rural roads, he said Prime Minister's Gram Sadak Yojana does not provide for money for maintenance and advised MLAS to inform the matter with the state government, which would in turn take up the matter with the Centre.

The government will decide steps to be taken by it on the Supreme Court order to end Haj subsidy after receiving the judgement of the apex court on the issue. External Affairs Minister S M Krishna today said this in New Delhi while talking to reporters on the sidelines of an All Indian Haj Committee function. He was asked if the Government was planning to file an appeal

against the apex court order.Mr.Krishna said the Apex court has given an interim order and the government is awaiting the final order of the Supreme Court.

Mr.Krishna said the government had decided to come out with its Haj policy for 2012 in January or February itself but it was delayed due to a pending case in the Supreme Court.

Terming the conduct of Haj operations as one of the most complex tasks undertaken by India, the minister said this year's Haj policy has been framed in close consultations with tour operators, Haj Committee and legal experts and a transparent procedure has been adopted by the government.
The minister said, from this year, Haj applications will have to be accompanied by proof of valid passports.

AIR correspondent reports,in its verdict on May 8th, the Supreme Court had directed the government to phase out Haj subsidy within a period of 10 years, saying that this amount can be more profitably used for social and educational development of the Muslim community.

A bench of justices Aftab Alam and Ranjana Prakash Desai had quoted Quran to justify doing away with the subsidy, which was around 685 crores rupees in 2011, noting that many Muslims would not be very comfortable to know that their Haj is funded to a large extent by the government.
A number of prominent Muslim leaders had welcomed the court's order, saying that the subsidy was not exactly
benefitting the community and the funds given in subsidy should be allocated for improving the educational and living
standards.

The West Bengal Government has decided to bring the women of Self Help Groups (SHG) under Helath Insurance Scheme.

Launching a project under National Rural Livelihoods Mission “Anandadhara” the Chief Minister, Miss Mamata Banerjee said in Kolkata on Thursday that the Helath Insurance Scheme for Self Help Groups will be implemented within next three months.

Miss Banerjee also announced that the State Government’s subsidy to this sector will be hiked to thirty percent from present’s twenty percent.

The Chief Minister said Marketing Centres for selling the products of SHGs will be opened at all State Capitals and each District of West Bengal.