Thursday, December 22 2005 15:49 Hrs (IST) - World Time -

New Delhi: Expressing displeasure over Government's reluctance to restore the EPF interest rate to 9.5 per cent, the Left parties and Samajwadi Party, both United Progressive Alliance (UPA) supporters, today (Dec 22, 2005) staged a walkout in Lok Sabha with a warning that it should "see the writing on the wall."

The protesting members, who were joined by Shiv Sena in the walk out, said the Employees Provident Fund Board's recommendation to reduce EPF interest rate by one per cent had harmed the interests of lakhs of people.

Responding to a calling attention notice moved by Rupchand Pal, CPI-M, Minister of State for Rural Development A Narendra said the Labour ministry had received the recommendation of the Central Board of Trustees (CBT) reducing the interest rate to 8.5 per cent for the current fiscal "and the matter is under consideration in the ministry at present".

Pal said there was no rationale for the steep cut in the interest rate and demanded that it should be restored to the original level.

Narendra said declaration of the rate of interest was governed by the provisions of the EPF Scheme, 1952, under which the interest is required to be credited on the balance available in the accounts of the members at such rate as may be determined by the Central Government in consultation with the CBT.

"In determining the rate of interest, the Central Government shall satisfy itself that there is no overdrawal on the interest suspense account," he said.

Suresh Kurup, CPI-M, said the CBT's decision had evoked largescale protests and accused the Government of following in the footsteps of the National Democratic Alliance (NDA) Government.

He said the Government has no right to reduce the interest rate unilaterally. He wanted to know whether Government was considering increasing interest rates for the Special Deposit Scheme.

Gurudas Dasgupta, CPI, said all the trade unions in the country had collectively opposed the CBT's decision. Observing that social security cannot be abandoned in a welfare state, he spoke of "serious consequences" if this was done.

His party colleague, C K Chandrappan, said the NDA Government was forced out of power due to certain policies and the UPA Government should "see the writing on the wall."