Montek Singh Ahluwali wants hike in diesel, LPG prices

NEW DELHI: Planning Commission deputy chairman Montek Singh Ahluwalia has backed an increase in the prices of diesel and cooking gas apart from easing the rules for foreign direct investment (FDI) in civil aviation and retail, while maintaining that the finance ministry under Prime Minister Manmohan Singh would quickly "resolve uncertainty among investors".

Ahluwalia, a long-time aide of the PM, told a TV channel that foreign investors should be reassured on the proposed general anti-avoidance rules ( GAAR) and that retrospective tax amendments, such as those which will hit Vodafone with a Rs 13,000 crore tax demand, would be used in the rarest of rare cases.