Promising to keep prices down ahead of the festival season, the government on Friday said it would ensure adequate supply of essential commodities and take more fiscal and monetary steps to contain inflation, which has significantly fallen by 0.5 per cent to 7.81 per cent.
"The government will take measured steps on the monetary and fiscal side to moderate inflation and inflationary expectations," Finance Minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Prices.
The country had adequate stocks of essential commodities and there was no reason for prices to go up.
"We will ensure there are no supply side constraints," he said expressing confidence that the recent measures would have a sobering effect in bringing down prices.
Chidambaram assured there was adequate stocks of foodgrains, pulses, edible oil and sugar.
Chidambaram said that an Ordinance was approved to amend the Securities Contracts (Regulation) Act, 1956 and
Depositories Act, 1996 which would help corporatisation and demutualisation of stock exchanges.
Likewise, an Ordinance was also approved for amending Banking Regulations (Amendment and Miscellaneous Provisions) Act to enable the RBI issue banking licence to multi-state cooperative societies.
Following up on its earlier decision to rescue the troubled private sector Global Trust Bank by merging it with a stronger public sector bank, the Cabinet gave post-facto approval to the amalgamation of the bank with Oriental Bank of Commerce.
As part of efforts to tone up the industry to face domestic and global competition, a decision was taken to set up National Manufacturing Competitive Council and constitute another Commission for Enterprises in the uorganised/informal sector to promote units under these sectors.