Yeddyurappa discuss inflation with Rangarajan

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Bangalore, Jun 19: Prime Minister's Economic Advisory Council Chairman C Rangarajan and Karnataka Chief Minister B S Yeddyurappa today discussed measures to be taken to check the rising prices of essential commodities in the wake of prevailing high inflation rate.

"We discussed the impact of high inflation on the poor. I expect the Union government will take more effective steps to bring the price situation under control without any major adverse impact on the growth scenario," Mr Yeddyurappa said. Speaking to reporters after emerging from the meeting, the Chief Minister said that he had sought the advise on how to balance the need of development financing and finding ways to protect the interests of common man from growing inflation.

He also discussed infrastructure package for Bangalore city and sought more funds from the centre.

"We conducted a study which said Rs 40,000 crore was needed to improve infrastructure in the IT Capital during 2007-12. Unless the Centre give a helping hand through substantial increase in allocation under JNNURM, it will be difficult," he said.

Out of Rs 7500 crore allocated under the mission for seven years for the City and Mysore, the government had received only Rs 1375 crore so far. It would be extremely difficult for the state government to find required resources for financing infrastructure in Bangalore, he said.

Mr Yeddyurappa said discussions also touched the financial inclusion of the 40 per cent of the rural population which are still left out of the Indian banking system- a major challenge for the government.

UNI

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