Communications Minister Arun Shourie on Tuesday admitted that the decision to roll back the fixed-line tariffs of Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd was taken under political pressure.
"It's the fourth time since 1999 that efforts to rationalise tariffs had to be given up. Today's decision to roll back tariffs has been taken due to political protests in the past few days," Shourie told reporters at a press conference to announce the reduction in fixed-line tariffs.
When asked to elaborate, Shourie said, "It is not only the government. The political class in general protested against the new tariffs."
Asked if Tuesday's decision was prompted by yesterday's meeting with Prime Minister Atal Bihari Vajpayee, Shourie said, "Why involve the Prime Minister? The protest was first made in Parliament and there was a general opposition to the issue."
Explaining the impact of the rollback on BSNL, Shourie said, "BSNL's expansion plans in rural areas is bound to slow down. I am telling you this because Bharatiya Janata Party president Venkaiah Naidu wanted consumers and others to know the impact of such decisions."
Tuesday's decision came after Vajpayee held a meeting with Shourie on Monday to discuss the controversy over the hike in tariffs by BSNL.
Deputy Prime Minister L K Advani, Finance Minister Jaswant Singh and Naidu were also present during the hour-long meeting at the prime minister's residence.
The government had to face opposition on the telecom regulator's norms not only from the industry, but also from political parties and consumer groups who claimed that the new interconnect regime had increased fixed-line tariffs substantially.
The government also came under fire in Parliament last week with even BJP members saying BSNL's tariffs could have an adverse impact on the party's electoral fortunes.
However, Shourie had supported the higher tariffs on grounds that the company had not raised tariffs in the rural sector. BSNL had also kept its monthly rental and fixed-to-fixed tariffs unchanged.