Left-UPA meet to decide fate of pension, banking Bills

The meeting of the United Progressive Alliance (UPA) and the Left parties tomorrow to coordinate the legislative agenda for the monsoon session of Parliament will be crucial in deciding the fate of the Pension Funds Regulatory and Development Authority (PFRDA) and the Banking Regulation Amendment Bill.

"The Pension Bill will be put on the legislative agenda subject to the Left's agreement," Parliamentary Affairs Minister Priyaranjan Dasmunshi told Business Standard.

The government's version of the Banking Regulation Amendment Bill envisages removing the 10 per cent cap on voting rights and allowing representation on the board of directors proportional to their holdings. The Left fear is that this would allow foreign banks to take over Indian banks as the FDI ceiling in banks has been raised to 74 per cent. The government has sought the Left's concurrence in letting at least Indian banks have these rights.

"We're telling them: don't permit foreign banks at all. If they do that, we will consider (passing) it," Yechury said today. This Bill was on the list of business in the Lok Sabha.

On the Pension Bill, the Left parties' opposition continues to be implacable. The government had hoped the announcement of the Sixth Pay Commission - that the Left had vociferously demanded - would have worn down their resistance.

However, CPI(M) leader Sitaram Yechury poured cold water on the government's plans: "We have two objections. The fund managers will have to be public sector; and money (in pension funds) should not be deployed in the stock market."

Watching its reforms agenda going down before its very eyes, the government is equally determined to send a strong message to the Left. "We can either govern or politicise everything," said a senior Cabinet minister about tomorrow's meeting.

It is not as if Left opposition to the Pension Bill will stall it significantly. The Bharatiya Janata Party (BJP) has promised informally that on this the government would have its support.

However, top sources in the government had earlier said that the prime minister was not keen to ram the legislation through. Apparently, this position has not changed. The CPI (M) has its own view on this: "Let the government decide to go with the BJP," said Left trade union leaders ominously.

The controversial Office of Profit Bill will also make an appearance in the monsoon session since President A P J Abdul Kalam refused to sign the Bill cleared in the last session.

Sources in the parliamentary affairs ministry added that the Wildlife Protection Act (amendment) Bill, the Right to Information (amendment) Bill, the Child Rights Bill, the Assam Rifles Bill, the Cantonment Bill and the Food Safety Bill would also be in the list of business of the monsoon session.