Wednesday, January 19 2005 11:57 Hrs (IST) - World Time -

New Delhi: Left parties and UPA (United Progressive Alliance) Government today exchanged views on major economic issues including banking sector reforms with the former insisting on consolidation on rural credit and protection of jobs.

"There was a general exchange of views on the working of the Government and the implementation of the programmes under the Common Minimum programme," Finance Minister P Chidambaram said after the 90-minute meeting of Left leaders, Prime Minister Manmohan Singh and UPA Chairperson Sonia Gandhi.

"There was general satisfaction that the rate of inflation had gone down to 5.7 per cent as on January 1 this year, compared to 6.4 in the corresponding period last year, he said.

On the banking sector reforms, the Finance Minister said that there is still "no roadmap" to undertake the exercise but the Left parties wanted that the Indian banks be protected from predatory takeovers and there should be no loss of jobs.

While CPM (Communist Party of India Marxist) leader Sitaram Yechury said that the rural credit target was over 1 lakh crore Chidambaram exuded confidence that the target will be exceeded.

Yechury said that the banking sector reforms should ensure that while public sector banks are strengthened, private sector banks also must be protected and steps taken to ensure that they do not collapse.

Asked whether there were any differences between the Left parties and the UPA Government, Chidambaram said, "Exchange of views with the Left cleared my mind."

On the withdrawal of Press note 18, Yechury said that domestic private sector should be protected and added that the Prime Minister clarified several issues in this regard.

Another meeting between the Left parties and the UPA Government will be held before the Budget session of the Parliament to take up other issues related to the Budget.

Asked whether issues of hike in FDI cap in telecom sectors was discussed, the leaders replied in the negative. They said that the security issues relating to hiking FDI in telecom should be dealt with "very very cautiously" by the Government.

The issue of increasing the EFP interest rate did not come up for discussion. Others who attended the meeting were Defence Minister, Pranab Mukherjee, Congress leader Ahmed Patel, CPM Gen Secretary Harkishen Singh Surjeet, CPI (Communist Party of India) leaders A B Bardhan and D Raja and Abani Roy of RSP (Revolutionary Socialist Party).