BJP Leader Prakash Javadekar on subsidised LPG cap to 12 cylinders & Increased RBI repo rate

The Reserve Bank of India's sudden decision to raise bank rate by 0.25 basis points will not bring down the prices but instead will prove counterproductive and will actually fuel price rise. The UPA government has increased Bank Rate, CRR, Repo Rate and Reverse Repo rate umpteen times without any tangible results. The government strategy to combat inflation remained restricted to squeezing the demand by raising the interest rates. When NDA demitted office Bank Rate and Repo Rate were 6% which have been raised to 9% by UPA government. This has ensured high interest rate regime to the detriment of the export industries and raised EMIs for the middle class. The high finance cost impacts adversely all the segments of the economy. The UPA government never succeeded in addressing the supply side issues, thus failing in arresting the inflation. This is the result of bankruptcy of ideas on the part of Manmohan Singh and Chidambaram in reviving the economy. Congress government wants people to cheer about their likely announcement of increasing the cap of subsidised LPG cylinders from 9 to 12 per family per year. People of the country are in no mood to appreciate Congress. Instead they are asking a simple question that who brought LPG cap of 6 cylinders in the first place? The decision to cap LPG cylinders in the nick of overall price rise was an anti people decision. People will not forget and forgive the UPA Government for this step. Till July 2012 all families were getting required number of LPG cylinders at a subsidised cost. UPA Government withdrew it in August 2012. When NDA Government demitted office the price of subsidised LPG was Rs.244 now it is Rs. 415 and people have to purchase each cylinder at the open market price of Rs. 1241. The much hyped DBT is yet to reach and benefit many families.