FM raps steel, cement cos for cartelisation

NEW DELHI: Finance minister P Chidambaram on Tuesday promised to take more measures to contain inflation even as he hit out at the steel and cement companies, saying the government is looking at the legal and administrative provisions to check their cartel-like behaviour. ���Containment of inflation remains high on the agenda of the government.

We have taken a set of fiscal measures and are contemplating more steps. It is my view that cement manufacturers and, to some extent, steel producers are behaving like a cartel. The MRTPC is conducting an inquiry into the allegations of cartelisation, and the government would look at legal and administrative provisions to deal with the situation,��� he said.

The ministries of steel and industry were talking to representatives of the two sectors, he said. Mr Chidambaram also pointed the forthcoming monetary policy review on April 29 could unveil more steps to tackle rising inflation which was ruling at three-year high of over 7% ��� above the central bank���s comfort level of 5%.

The weekly inflation rate, based on the wholesale price index (WPI), stood at 6.7% on March 15, 2008, and reached 7.41% on March 29. However, it has come down to 7.1% on April 5.

The Reserve Bank of India (RBI) last week hiked the percentage of money banks are supposed to keep idle (or, cash reserve ratio) by 50 basis points. Its monetary policy review is due on April 29 and the government will wait and see the steps taken by RBI, the minister said.

The RBI monetary policy, while being conducive to economic growth, has attempted to contain inflationary expectations arising out of uncertainties in domestic and international environment, he added. ���Containment of inflation remains high on the agenda,��� he said. ���As and when necessary, more fiscal measures will be taken. We have taken fiscal measures and more steps are being contemplated.���