More petrol, power, LPG price hikes coming soon, says PM at National Development Council to boost 12th Five Year Plan
Singh also cautioned that "business as usual" policies will not be sufficient to achieve the scaled down growth target of 8 per cent, which he described as "ambitious" in the
This is the second time that the Planning Commission has proposed reduction in the average annual growth target for the 12th Plan. It was first scaled down from 9 per cent to 8.2 per cent and now to 8 per cent.
Noting that India imports oil, natural gas and even coal, Singh said some adjustment in price was necessary to moderate demand of these products and curb imports.
"Energy pricing is critical for both objectives. If domestic energy prices are too low, there will be no incentive to increase energy efficiency or to expand even supply", Singh said, adding the centre and the states need to work together to create awareness in the public about the need to limit energy subsidies.
Energy experts, Singh said, were unanimous that the country cannot expect to achieve rapid, inclusive and sustainable growth if it did not undertake a phased adjustment in energy prices to bring them in line with world prices.
He further said failure to contain subsidy would mean either cutting plan expenditure in other sectors or exceeding the fiscal deficit target.
Describing the current economic situation as "difficult", the Prime Minister said the first priority of the government would be to reverse slowing growth rate.
"The continuing crisis in the