Naik said that as a minister his three first priorities would be to increase the productivity of the public sector undertakings ("as they say in management, there is always a better way of doing things"), monitoring the import bill and expediting projects hanging fire. "We want to be on a par with the developed world, in some respects we are," he said.

Naik particularly mentioned projects in the north-east, held up for law and order problems. The Union petroleum and natural gas minister said he intended to make a mission out of fighting adulteration of petroleum products.

Addressing an impromptu press conference in his chamber on his first day in office , Naik said, "Certain changes are required to achieve the target (of the economic reforms)". He was accompanied by minister of state E Ponnuswamy.He did not spell out the innovations he had in mind, saying he needed time to study the issues involved.

The minister did let slip some hints of the direction the phased decontrol of petroleum products was about to take, though. In a feeble attempt to dodge a question on paring down the more than 100 per cent subsidies on kerosene and liquefied petroleum gas (LPG), Naik said, "In the normal course (of events) the subsidy has to be reduced to a minimum."

He also spoke of aligning prices of high speed diesel (HSD) and superior kerosene oil (SKO), to minimise the incentive for adulterating diesel with kerosene. The retail price of diesel is Rs 13.91 a litre in the capital, while kerosene oil is available for Rs 2.50 a litre through the public distribution system.

While a 40 per cent hidden subsidy on diesel prices was rolled back by the Union petroleum ministry earlier this month, the subsidy per litre of kerosene remains Rs 5.55 as litre or more than 200 per cent. "Kerosene and diesel prices should be brought in alignment so that there is little motive for adulterating one with the other," Naik said in Hindi.

Asked if his statement was a pointer to implementing the delayed roll-back of subsidies on kerosene, Naik said, "That is all I am prepared to say for the moment."

"Subidy as a whole is a major issue affecting our economy," he said, adding, "it should be reduced to a minimum in a way in which it doesn't hurt the weaker section of society...the small-scale manufacturing business and small industry."

He emphasised that subsidy would have to be made available to small business and small industry. "The broad programme enunciated in our national agenda, together with some changes incorporated in drafting the manifesto would continue," the minister for petroleum said.

"Then there is the Ninth Five Year Plan, we have envisaged certain programmes, which are in tune with the manifesto," Naik added.

Tamil poet and Pattali Makkal Katchi (PMK) leader from Tamil Nadu E Ponnuswamy said "we will work together", adding that the "national interest was the people's interest". Ponnuswamy has been the president of the Tamil Nadu Depressed Classes League since 1980.

Ram Naik would not commit himself to specific policy decisions, like a re-think on the diesel price hike effected on October 4.

"I'll study the matter in depth and then I will be able to tell you what I will do about it," he told scribes on Friday.

He also parried a question on Bharat Petroleum Corporation's proposed refinery at Bina, which is among the delayed projects he plans to expedite. "If the Prime Minister has said that the project was his priority, it would be mine too," he said easily in response to a question.