Increase in repo rate will hit common man: BJP

New Delhi, Feb 1: The BJP today warned that the increase in repo rate by 0.25 per cent basic points, announced by RBI yesterday, will further hit the common man already reeling under the price rise, with loans becoming costlier.

This fifth rise in repo rates will fail to combat the inflation, the party said.

Talking to newspersons, BJP spokesman Prakash Javadekar criticised the RBI for simultaneously increasing the provisioning from 1 per cent to 2 per cent on assets loans, credit card receivable, personal and real estate loans which would result in loan becoming costlier.

This will a effect common man and even the industries "which has benefited by the low interest regime during the NDA period." Also assailing the UPA Government for utterly failing on the economic front, he said it was paradoxical that "the economy is growing at 9 per cent but essential commodity prices are rising by 19 per cent. Sensex is crossing 14,000 points on one hand but on the other 14,000 farmers have committed suicide during the 34 month old UPA regime." Similarly, Indian entrepreneurs were globalising buying assets abroad, but hardening interests in the country was threatening competitiveness of Indian exports, he said.

Mr Javadekar also lambasted the Government's SEZ policy under which it was forcing eviction of farmers from their land without proper compensation and increasing unemployment in the country.

The party pointed out that in the past 72 hours more than 17 farmers had committed suicides in Vidarbha region of Maharashtra. In January alone more than 67 farmers committed suicide in the region.

A total of 1450 suicides in 2006 in Vidarbha region was a witness to "the grim story of gross failure of the Congress government to protect the farmers.'' ''The Government seems to be confused, clueless and trapped between the populist sloganeering and pressure from the Left," it added.

UNI

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