FDI in retail: Mamata Banerjee's ministers to resign today, PM to address nation, trust vote likely

New Delhi: Mamata Banerjee's ministers will meet Prime Minister Manmohan Singh around 3 pm today to resign from his government over the new reforms he cleared last week. They will then head to Rashtrapati Bhawan where they will formally withdraw their letter of support to the ruling UPA coalition in which Ms Banerjee's Trinamool Congress was the second-largest ally. With his government reduced to a minority, the Prime Minister will most likely be asked by the country's President to seek a trust vote in Parliament.

This evening, the PM is expected to explain on television the economic measures for which he has staked his government. Even the opposition BJP concedes that he is likely to win his vote of confidence. The survival of the UPA depends on regional heavyweights Mulayam Singh Yadav and Mayawati, who provide external support to the government. So far, neither has indicated a change of heart, though Mr Yadav has warned that his party should not be taken for granted.

On Facebook last night, Ms Banerjee attacked the government for the notification it issued yesterday stating that its new policies for foreign investment in the retail sector are in effect. A week ago, Ms Banerjee said she would not accept either this or a hike in diesel prices and a cap on subsidised cooking gas for households. "Is it ethical, moral and democratic for a minority government to issue government order forcibly and hurriedly when massive protests against it are taking place across the country?" she posted on her Facebook page.

The relationship status for the UPA and Ms Banerjee has for long been "It's complicated" with the chief minister often challenging the policies the government wanted to champion. Last year, when the cabinet first cleared 51 per cent foreign direct investment for multi-brand retail, Ms Banerjee threatened to quit the government, and the policy was shelved, provoking international criticism, and a loss of both face and investor confidence. This time around, the Prime Minister was resolute about standing his ground.

So though Ms Banerjee gave the government 72 hours of notice, creating a window for negotiations, no concessions were offered. The fact that the new retail guidelines were notified hours after she said she was sticking to her schedule for exiting the UPA was a clear message that the coalition was resigned to a future without her.

Agriculture Minister Sharad Pawar, whose party is another key member of the UPA, refuted Ms Banerjee's accusations that she hadn't been consulted about the new economic measures. He said that he was present along with Ms Banerjee at a meeting of senior leaders of the coalition when Dr Singh discussed FDI in retail. "Nobody was happy to do this...not even the PM....but it was required," Mr Pawar said.

Sources say that to appease other crucial partners like Mulayam Singh Yadav and Mayawati, the government is likely to announce a 50 paise rollback in diesel prices, and increase the quota of subsidised cooking gas cylinders per household from six to nine, and that the decision was not shared yesterday to prevent opposition parties who called a massive nationwide strike from claiming credit for the concessions.

Prime Minister will make final attempt to change Trinamool's mind on Friday

New Delhi: The Prime Minister is likely to make a last attempt to persuade the Trinamool Congress to reconsider its decision of exiting the UPA government when its ministers come to resign. The TMC's six ministers are expected to resign on Friday.

At the same time, sources say, both the Congress and the government are standing fast on the reforms decisions taken last Friday that have now put the UPA government in a minority in Parliament, following the TMC pull-out.

The government also remains confident that it will manage the numbers and survive a trust vote if required in Parliament.

The sources said that both the PM and Congress Chief Sonia Gandhi are unanimous in their decision to push through the reforms. Both the party and government are firm that there will be no rollback on foreign investment in retail as well as the hike in diesel prices and a cap on subsidised LPG cylinders for homes.

The party has already announced that the states ruled by it will increase the cap on subsidised cylinder from six to nine. Delhi has already done so for the poor.

About the reported secrecy around the Cabinet decision on allowing FDI in multi-brand retail, the sources say that the decision was taken on September 14. The PM consulted Sonia, and allies Sharad Pawar and Farooq Abdullah. DMK's T R Baalu was also informed.

The government consciously decided not to circulate papers before the Cabinet meeting regarding FDI in retail. Most cabinet ministers were also in the dark about the consultations on FDI and that Cabinet would take it up soon.

A day before the Cabinet meeting, commerce minister Anand Sharma spoke to Mamata Banerjee but did not raise the issue of FDI in retail with her.





 

From: NDTV

Hope the Indian housewife rises to the occasion: Ambika Soni on LPG limit

New Delhi: Union minister Ambika Soni  has said in reaction to the restriction of subsidised gas cylinders announced on Thursday night, "I do hope that the Indian housewife will once again rise to the occasion. As a woman, I know how difficult it will be as the Indian housewife has to manage budgets."

Earlier, BJP leader Sushma Swaraj had said, "I wish the woman president of the Congress Party (Sonia Gandhi) had felt the problems of a lady of the house."

After Thursday night's announcement, the government will allow only six subsidised gas cylinders in a year at a cost of around Rs. 400. Any cylinders above that will cost a family Rs. 750.

"As a member of the council of ministers I do realize the imperative of raising prices of commmodities like diesel and LPG, but this tough measure is imperative for growth. Sensex and industry has welcomed as signals in the right direction by the government," Ms Soni said.

She added that tough decision hurt but they have to be taken so that the government has money to spend on social welfare and infrastructure.

She also said that chief ministers could "make the bitter pill more palatable". The last hike in petrol prices of Rs. 7 was softened by states reducing taxes, after protests by allies and opposition parties.
 

Sonia Gandhi writes to PM: Stop ostentatious functions at memorials

New Delhi: Congress President Sonia Gandhi has written to Prime Minister Manmohan Singh asking the government to stop ostentatious displays and cause minimum inconvenience to the public for the functions that are organised every year at Delhi's many samadhis, or memorials, for leaders. She wants these displays to be drastically reduced.

The Prime Minister's Office (PMO) has begun to action Mrs Gandhi's request and will start taking steps to reduce the number of functions held at these memorials. The letter was sent a few days after former prime minister and Mrs Gandhi's husband Rajiv Gandhi's birth anniversary on August 20 and before Mrs Gandhi went abroad for medical treatment.

The government at present organises six functions to mark birth and death anniversaries at the memorials of Mahatma Gandhi, Jawaharlal Nehru, Indira Gandhi, Rajiv Gandhi and Lal Bahadur Shastri. Another 10 are organised by various trusts and the government facilitates these functions.

There was much criticism of the government's spending on advertisements by ministries and departments to mark Rajiv Gandhi's anniversary this year. Mrs Gandhi's letter, however, does not mention ads.

Last month, an NGO, Foundation for Restoration of National Pride, filed a Public Interest Litigation (PIL) in the Supreme Court, asking it to stop the government from "eulogising" and "glorifying" its achievements using public money. The Supreme Court has agreed to hear the petition, along with one which objects to the government spending crores on birth and death anniversaries of leaders.

In May, a Right to Information (RTI) application filed by NDTV established that the Central government has spent Rs. 58 crore on ads in the last three years. Rs. 15 crore were spent on ads honouring Mahatma Gandhi; another Rs. 12 crore were used for ads in honour of BR Ambedkar.

Ads on the Gandhi family (Jawaharlal Nehru, Rajiv Gandhi and Indira Gandhi) added up to roughly Rs. 22 crore, and that did not include the campaign involving Rajiv Gandhi's birth anniversary.

The RTI also reveals that state governments are equally generous with their advertising expenditure - Andhra Pradesh, Delhi and Uttarakhand are the big spenders. In Andhra Pradesh, Rs. 8 crore have been spent in three years on ads for former chief minister YSR Reddy who died in a helicopter crash in 2009.

The slowing economy has put the government in austerity mode. As part of its attempts to check expenses, five-star hotels are off-limits for seminars and official lunches and foreign travel by officials is being restricted.

From: NDTV

Coal controversy: Sonia Gandhi to address Congress Parliamentary Party today

New Delhi: Leading the counter-offensive on the coal block allocation issue, Congress President Sonia Gandhi is expected to rally the party behind Prime Minister Manmohan Singh.

Mrs Gandhi will be addressing the general body meeting of the Congress Parliamentary Party, which will be the first occasion for her interaction with party MPs after the controversy broke out.

Her address will come shortly before Prime Minister Manmohan Singh leaves for Iran for a four-day trip to attend the NAM Summit.

The proceedings of the Lok Sabha and the Rajya Sabha have been paralysed for the last five days following turmoil on the issue.

While interacting with a group of party leaders last week Mrs Gandhi had signalled to partymen to be on the offensive against BJP which has been sticking to its demand for the resignation of the Prime Minister.

Mrs Gandhi's address is expected to form the basis of the party's counterattack in Parliament on Tuesday, as several party MPs are planning to give notices in the Lok Sabha for a discussion on the issue under Rule 193, which does not entail voting.

Meanwhile, Home Minister P Chidambaram and Coal Minister Sri Prakash Jaiswal this evening held a special briefing for party MPs and union ministers on the issue, apparently as part of Congress plans to corner the Opposition on the issue and puncture their criticism.

It is learnt RJD's Lalu Prasad, Samajwadi Party's Shailendra Kumar, CPI(M)'s Ramchandra Dome and BJD's B Mahtab have given notices in this regard. 

From: NDTV