FM assures TU leaders

Finance Minister P Chidambaram was less than reassuring to the trade union demand that the Employee Provident Fund interest rates be restored to 9.5 per cent, as, he said, 85 per cent of the stakeholders had small EPF deposits and would not be significantly hit by the 1 per cent reduction in interest rates.

In a pre-Budget interactions with trade unions, the finance minister also reminded unions ""when they raised the issue of loss of jobs through selloff""that disinvestment was not privatisation. He said the government had spent Rs 2,560 crore to revive 7 SSI units.

A package for the revival of six more was in the pipeline.

Without appearing to reject any of their demands, he nevertheless indicated that he could only do what was practicable.

The unions had demanded that the income tax exemption ceiling limit should be raised to Rs 2 lakh, lifting the ban on recruitment in government departments, restoration of EPF interest rates, withdrawal of the pensions Bill and restoration of the old pension scheme for the post-2004 entrants.

They also wanted quick enactment of the unorganised sector workers Bill and agricultural workers' Bill with adequate central government funding.

They also wanted a 6th Pay Commission and the ending of coporatisation of defence production units.