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Left sweeps West Bengal, Kerala: warns of bigger role in government
New Delhi: The Left Front emerged stronger in national politics after it registered stunning victories in the elections to the West Bengal and Kerala Assemblies.

A statement issued by the CPI (M) Central Committee said, "The election results have strengthened the role of the Left in national politics."

The Left parties have been at loggerheads with the government over key issues like airport modernisation, labour reforms, pension reforms, raising the foreign direct investment cap for insurance and retailing, and increasing oil prices in step with rising global crude oil prices.

In West Bengal chief minister Buddhadeb Bhattacharjee's pro-reforms agenda won the day a group in the CPI (M) indicated that on several issues, including pension reforms, the Left would now be more flexible at the Centre.

However, Prakash Karat's statement that the CPI could enjoy greater intervention at the center struck an ominous note and many in the Congress said the future of reforms at the Centre was now uncertain.

The future flash points between the Congress and the Left could include quotas in private sector jobs, foreign policy on Iran, the US and neighbouring Nepal.
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FM says no oil duty cut
New Delhi: The finance ministry has refused to cut duties on petroleum products, a demand that Left parties have made to defuse the current oil crisis. Such a move would have provided a cushion to the public sector oil marketing companies and prevented any significant hike in retail prices.

However finance minister P Chidambaram has rejected the idea of duty cuts during a meeting with Petroleum Minister Murli Deora on the grounds that the government cannot cut its revenue stream. Deora is learnt to have told Chidambaram that the oil firms could lose Rs73,512 crore in revenue this fiscal if the price of petrol is not raised by Rs9.33 per litre, diesel by Rs10.43 per a litre and LPG by Rs114.45 per cylinder.
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Air travelers may face air travel cess
New Delhi: The Government is "considering" levying a cess on air travel to develop smaller airports across the country.

Union Civil Aviation Minister Praful Patel however, did not specify the expected revenue from the cess and the time by which it was likely to be imposed or how it was planned to be utilised.

Patel said the government was also considering providing subsidy to airlines for operating flights on non-economical routes. Patel said the government would invest Rs352.10 crore in modernising and developing Kolkata airport, which include construction of an integrated cargo complex, linking corridor for 'circular railway' from Dum Dum to Kolkata Airport.

On the Chennai airport development, he said an estimated investment of Rs119.48 crore would be made for construction of five night parking bays, administrative building, integrated cargo cokmplex amongst other. Work on both the airports was likely to be completed by 2007-08, he added.
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domain-B : Indian business : News Review : 12 May 2006 : general