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Thursday, 31 May 2012 - India set for sweeping protests at petrol price rise |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Legal Deals Earnings Social Pulse Business Video The Freeland File Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia India Insight World Video Reuters Investigates Decoder Politics Politics Home Election 2012 Issues 2012 Candidates 2012 Tales from the Trail Political Punchlines Supreme Court Politics Video Tech Technology Home MediaFile Science Tech Video Tech Tonic Social Pulse Opinion Opinion Home Chrystia Freeland John Lloyd Felix Salmon Jack Shafer David Rohde Bernd Debusmann Nader Mousavizadeh Lucy P. 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India: More than just call centres Related Topics World » Activists from Shiv Sena, a Hindu hardline group, carry a motorcycle as they shout slogans during a protest against the price hike in petrol, in Jammu May 24, 2012. Credit: Reuters/Mukesh Gupta By Satarupa Bhattacharjya and Annie Banerji NEW DELHI | Thu May 31, 2012 2:04am EDT NEW DELHI (Reuters) - Indian opposition parties planned a national strike on Thursday in protest against the steepest petrol price rise in the country's history, seeking to exploit popular anger with Prime Minister Manmohan Singh's embattled coalition government. Protests, marches and road blocks were planned across the country. The strike could reduce public transport and hit government offices, colleges, firms and industrial plants, but because it is not centrally organized its impact will differ from state to state. "It will be a total shutdown across the country. It will be the biggest democratic protest the country has seen in a long time," said Prakash Javdekar, a leader of the main opposition Bharatiya Janata Party (BJP), which won nearly 19 percent of the vote in the 2009 election. Strike calls in India have had mixed results in the past, and it was not clear how many people would respond on the day. A strong turnout could indicate popular dissatisfaction with Singh's two-term, Congress Party-led government. The day of action - or "bandh" - called by the BJP and smaller left-wing parties is not a threat to the survival of Singh's government, but it does underscore the difficulty he faces trying to implement unpopular economic reforms. The backlash over the petrol price increase has already unnerved the government, prompting it to drop any immediate plans to raise the price of heavily subsidized diesel and kerosene, a move investors have been pushing for to narrow the budget deficit. The coalition, weakened by a string of corruption scandals and infighting that has stymied reforms, faces mounting criticism over its management of the economy. Investors and economists cheered its decision last week to allow state-controlled oil companies to increase petrol prices for the first time in six months, enabling them to recover some of the losses they had racked up due to higher oil prices and a plunging rupee. But the roughly 11 percent increase sparked public protests and some of the Congress party's coalition partners have tried to distance themselves from the decision. Congress's second-biggest ally in parliament, the Dravida Munnetra Kazhagam (DMK) party, briefly threatened to quit the government on Wednesday if the increase was not trimmed, showing why decision-making is so hard in New Delhi. PARTIAL ROLLBACK POSSIBLE The government and the state oil companies have already opened the way to a partial rollback of the petrol price increase of 6.28 rupees per liter, excluding taxes. The head of the Indian Oil Company, R.S. Butola, strongly hinted last week that the increase might be trimmed on June 1, when state oil companies will review their charges based on international oil prices and the exchange rate The BJP controls seven of India's 28 states, including the industrial hub of Gujarat and Karnataka, which is home to Bangalore, India's "Silicon Valley". A spokesman for computer-chip maker Intel Corp, which has about 3,200 employees in India, most of them in Bangalore, said the company had asked staff to work from home. Google Inc. and Infosys, which also have a large presence in Bangalore, said it would be "business as usual" for them. In Mumbai, India's financial capital, the ruling Shiv Sena party, a BJP ally, said residents "should not venture out of their houses" on Thursday. But banks said they anticipated no disruption as buses and trains were expected to run normally. In the BJP-ruled state of Himachal Pradesh, the chief minister said he would show his support for the protest by walking to work on Thursday rather than taking his official car. New Delhi-based political analyst Amulya Ganguli said the political impact of Thursday's strike would be muted. "For people in India it will be a holiday. So they will take advantage of the call for a bandh to stay away from work," he predicted. Asim Das, a 50-year-old electrician who travels to Kolkata, the capital of West Bengal, by suburban train every day, said he had been shocked by the price rise but would not join the strike. "I cannot afford to miss a day's earnings because of a strike which serves only the politicians," he said. (Additional reporting by S. Murari in CHENNAI, D. Jose in TRIVANDRUM, Sujoy Dhar in KOLKATA, Ashok Pahalwan in JAMMU, Jatindra Dash in BUBANESHWAR, Shilpa Jamkhandikar and Swati Pandey in MUMBAI, Harichandan Arakali in BANGALORE, Girish Sharma in BHOPAL, Mohammed Shafeeq in HYDERABAD, Sanjay Pandey in GUJARAT and Abhishek Madhukar in DHARAMSHALA; Writing by Ross Colvin; Editing by John Chalmers and Tim Pearce) World Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above.   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Support Corrections Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Podcast   Newsletters   Mobile About Privacy Policy Terms of Use AdChoices Copyright Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.

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