Manmohan opposes free power to Andhra farmers

MANDATE 2004

There appears to be a division in the Congress party on the issue of making available free electricity to farmers in Andhra Pradesh.

Congress leader Manmohan Singh yesterday said that the state government need not supply free power to farmers.

While acknowledging that farmers in the state had suffered in the past due to drought and other policy initiatives, he said, "I think some amount of comfort was necessary but that does not mean there should be no user charges".

He said that the general approach for the government should be to levy user charges.

The newly-elected Andhra Pradesh Chief Minister YS Rajashekhar Reddy had run his campaign on the promise that farmers would be exempt from paying electricity bills and implemented the decision immediately after assuming office.

Tamil Nadu too has adopted the model and is supplying free electricity to farmers.

The Punjab government was earlier forced to reverse its decision in the wake of the heavy toll on the exchequer.

Singh also said that the Reserve Bank of India's forecast of 6.5-7 per cent gross domestic growth during the current fiscal was realistic while he termed the 8.1 per cent growth in 2003-04 as an aberration.

He told reporters that the 8.1 per cent growth last financial year was inflated due to a steep increase in agriculture production after a very severe drought in the previous year.

"That cannot form the basis for a conclusion that we are now on a trend growth rate of 8 per cent. The over 8 per cent growth is certainly an aberration".

Asked whether it would be difficult to achieve an average annual growth rate of 8 per cent during the tenth plan period, Singh said, "I won't say it is impossible.... India can achieve much higher growth rate. We have to work towards that goal, we need to design our policies to promote savings, investments and competitiveness," he said. Singh also said that controlling inflation was a "national priority".

"We will have to watch the price trends as rising prices have a bearing on inflation rates", he pointed out.

Regarding the common minimum programme, Singh said the draft was ready but he and other senior colleagues of the party have not had the time to discuss it with the party allies.