JD-U president Sharad Yadav demands withdrawal of subsidy on diesel for luxury cars

NEW DELHI: JD-U president Sharad Yadav on Friday demanded that the government withdraw subsidy on diesel being used in luxury cars, big malls and mobile towers.

Yadav's reaction came a day after the government indicated that it might do away with the subsidy enjoyed by luxury car owners.

"... We can accept your (Opposition's) suggestion and try to work out what mechanism could be found out so that this section (diesel car owners) is not subsidised," Finance Minister Pranab Mukherjee said replying to a debate on price rise in the Lok Sabha yesterday.

The government gives a subsidy of Rs 6.08 per litre on diesel.

Addressing mediapersons, Yadav said, "Why the subsidy should be provided to the rich people. The odd 15 lakh rich people driving luxury cars, who consume 15 per cent of the diesel, should not be provided subsidy. Similarly, the malls and mobile towers should not be provided any subsidy. That way, we may be able to save a lot and help the farmers in providing these benefits."

The JD-U chief, at the same time, cautioned against any attempt to leave diesel prices to market regulation on the line of petrol prices.

"Government is contemplating handing over diesel pricing also to market mechanism like petrol. This will lead to further rise in prices and the poor, mainly farmers, will have to bear the brunt. Subsidy is required only for that section, which is unable to bear market prices," he said.

Yadav also criticised the government for giving "assurances many a times in the House to bring down the prices" but "practically failing" to curb it. He said that even the rise in prices of food items has not benefited farmers.