Countdown on, CMG meets to chalk out plans

Sinha, besides giving broad guidelines to the CMG, also favoured setting up of a 24-hour control room in the South Block to monitor events in Iraq.

While the CMG is chaired by Abhyankar, the members include joint secretaries handling West Asia and Gulf from the Ministry of External Affairs, a joint secretary from the Civil Aviation Ministry and a joint secretary from the Ministry of Defence.

It is understood that joint secretary level officials from the Ministry of Finance and Petroleum will be attending the CMG meetings in case the need arises. Joint Secretary Gautam Mukhopadhaya of the Defence Ministry has been put on the CMG in case there is emergency need to requisition Air Force aircraft for evacuation or there is a demand of humanitarian aid.

The CMG discussed the state-of-play in the Iraq crisis, noting that the looming threat of war was reflecting negative sentiment in the global stock markets.

The South Block is now waiting for US President George Bush’s address to the nation later in the day even as Washington’s Monday ultimatum to then UN expires. The Azores summit over the weekend has confirmed that the diplomacy over Iraq was over and US, UK, Spain and Portugal were signalling imminent attack on Baghdad.

However, New Delhi is more worried about the havoc war clouds are playing with the oil and gold prices. Crude oil prices touched $36.5 per barrel, up by $1.19 since Sunday. Gold prices shot up by 10 dollars to $343.50 per ounce on Monday even though they have already touched up $375 per ounce on February 28.

The government’s worry is that uncertainty in global markets would play havoc with Indian economy, notwithstanding the increase oil import bill. South Block believes that even if the overall global availability of oil may not be adversely affected in case of war, the possible conflict will result in war risk premium in oil prices as well as war insurance risk premium.

New Delhi’s understanding is that current oil prices, already carrying a war premium of three dollars a barrel, is expected to rise sharply in the event of hostilities.

Nearly 20 Indian nationals have decided to stay back in Baghdad at their own risk. This includes 14 businessmen working on several projects under the UN Oil for Food Programme as well as three nuns from the Missionaries of Charity.