PM reviews steps that have to be taken to rein in inflation

New Delhi, May 19 (UNI) Prime Minister Manmohan Singh today reviewed the prices of essential commodities at a meeting of the Cabinet Committee on Prices (CCP) and the steps that have to be taken to rein in inflation, particularly the prices of essential commodities, including wheat, rice and sugar.

The meeting takes place in the wake of UPA Chairperson and Congress President Sonia Gandhi's advice to the Government two days ago to keep a close watch on prices, particularly the buffer stock position of wheat, which was being imported for supply in southern states.

Ms Gandhi had given the advice at the Congress Parliamentary Party (CPP) meeting, which was attended by Dr Singh and other Congress Ministers.

Opposition MPs have recently expressed concern in Parliament over the rising prices of essential commodities and charged the government with failure to check inflation, particularly in the light of the proposed hike in the retail rates of petrol and diesel.

The Cabinet approved the proposed changes in the Banking Companies (Acquisition and Transfer of Undertakings) and Financial Institutions Laws (Amendment) Bill, 2005 aimed at enhancing flexibility of the Boards of Directors.

The Cabinet also approved enactment of a new legislation on payment and settlement systems Bill, 2006 which seeks to provide for an explicit legal basis for payment and settlement system and their regulation.

It would also empower the RBI for such regulation of payment systems and provide a legal basis for all net settlements and to define settlement finality.

The proposed legislation would also provide for a legal basis to recognise clearing houses, legal sanction to netting of payments with receipts, finality of settlement, recognition of service providers and participants, electronic mode of payments and explicit powers of supervision over securities clearing and settlement (SCSS).

Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters the Cabinet gave another approval to introduce the Sashastra Seema Bal Bill 2006 in Parliament. Sashastra Seema Bal battalions are presently governed under the provisions of CRPF Act and rules. The new legislation will provide SSB their own Act like those of other border guarding forces to provide for control, directions and service condition of the force personnel. This will improve discipline, control and administration of the force.

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