Monopolies and administered prices are economic facts; they are also products of a particular mindset which in India refuses to die. From April 1, a well-established monopoly in India was dismantled and the government abandoned the old system of administered prices in the petroleum sector. But these changes have not yet ushered in, as they should have, a new age in the respective areas. The old order persists in the interstices of the new, holding the latter back. After announcing the departure from administered prices, the petroleum minister, Mr Ram Naik, without a blush, instructed the oil companies not to hike prices. What the minister giveth with his right hand, he taketh away with his left. Mr Naik's announcement has thus left the prices of petroleum products unaffected. The argument the minister advanced is that he wanted to soften the impact of the transition. What he overlooked was the simple fact that this transition has been in the offing for half a decade. There are no reasons to stop the change from becoming actual. Mr Naik has asked the oil companies to 'absorb volatilities in the international market''. This stops the oil companies from acting as independent economic agents driven by the desire to post profits. The arms of the oil companies are being twisted to keep prices at current levels and to absorb the losses. Thus in the petroleum sector, India no longer has administered prices but frozen prices. The bottle looks new but inside it are the dregs of a very bad wine. Videsh Sanchar Nigam's loss of its monopoly over international long distance calls is not without certain contradictions. The immediate effect of this will be a lowering of call charges as has happened in the national long distance sector. A cut in rates by 20 per cent has already been announced. They can and should fall even further with competition and its inevitable attendant, a price war. But this does not appear to be immediately on the cards. The monopoly has gone but no alternative gateway is still available. This makes the dismantling of the monopoly somewhat meaningless. The reason for this is simple. Bureaucratic inefficiency has prevented the granting of access codes to private operators. The access code is crucial, for this will enable customers to reach licensed private operators. Two private operators, Bharti Telesonic and Reliance Communications, have been granted licenses. But they are still not ready to provide services. India thus hovers on the threshold of a new age in telecommunications. It needs a push to go over. This is also true for internet telephony which also became official. Too many restrictions are tying this down. The huge gaps between policy and reality might make one wonder if the government pulled of a prank on April fool's day.