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``Full efforts to resolve problems with Pakistan''

Kanwar Yogendra and Agencies

Prime Minister welcomes Musharraf's Kashmir proposal

SHIMLA: Prime Minister Manmohan Singh said here on Sunday that the country would make "full and sincere" efforts to resolve all bilateral problems with Pakistan through talks. Though progress had been made in strengthening the ties with Islamabad, "several complexities" remained, he said.

Dr. Singh welcomed the proposal of Pakistan President General Musharraf to demilitarise a part of Kashmir. On Siachen, he said talks were on. "We will thoroughly analyse the progress. We are not against finding a permanent solution to the Kashmir problem in this situation by way of talks with our neighbour. The atmosphere now is most affable."

Dr. Singh said that with the promotion of people-to-people contacts between the two countries, the frequency of the Srinagar-Muzafarrabad bus service would be increased.

The Prime Minister was addressing a press conference. He had visited the tribal district of Kinnaur and dedicating the 1500 MW Nathpa Jhakri Power Project to the nation on Saturday.

Ties with Left

On the United Progressive Alliance's relations with the Left, Dr. Singh said, "we continue to enjoy their progressive support, though sometimes we differ on issues." When asked about the discomfort of the Left on the "non-implementation" of the National Common Minimum Programme in various States and the absence of coordination committees there, the Prime Minister said, "it is not necessary since we are politically apart." Dr. Singh said that though at the Centre the co-ordination committee had proved its utility, it was not very sure of its extension to the other Congress-ruled States.

On an increase in Employees Provident Fund interest rate, Dr. Singh said it required major reforms and it was for the board and its trustees to decide.

Power sector needs reforms

Speaking at a Power Secretaries conference earlier in the day, Dr. Singh said the State electricity boards (SEBs) which were reeling under a Rs. 21,000-crore loss needed to be unbundled and the power sector in the country needed urgent reforms.

He said unbundling would ensure a more competitive environment in the sector.

On Saturday, he expressed concern over the electricity shortage in the country and spoke against providing free power as it could be a hindrance to additional power generation.

"While the demand for electricity in the country is increasing, power cuts are assuming alarming proportions," he said.

He expressed dismay at the performance of private investors in the sector. " There is no boon for private investors in the power sector," he said.

The Prime Minister left for Delhi on Sunday after spending a night in the tribal sojourns of Kalpa in Kinnaur district.

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