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Allies back PM stand on CAG report, Mamata open to talk aviation FDI

Ruling coalition working towards getting all allies on board to thwart BJP's attack

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BS Reporter New Delhi

Mamata Banerjee was the star of the show at the meeting of the coordination committee of the United Progressive Alliance (UPA) on Wednesday.

In an exceptionally amiable mood, Banerjee gently explained to the gathering at her first meeting of the committee (the committee’s second – Banerjee did not show up at the first meeting held earlier this month) that while she would be unable to support the Union government’s proposal on FDI in multi-brand retail or even agree to leave the choice to state governments, she might be open to discussions on FDI in civil aviation.

Considerable time was spent by the UPA allies on how to defend the prime minister’s position on the CAG report and Banerjee told the gathering that there was no question of allowing the PM to step down.

 

But no trace remained of the earlier bitterness over the Presidential election, as she laughed and joked with other colleagues. To that extent, Defence Minister A K Antony’s mission earlier this week to visit West Bengal was successful.

Finance Minister P Chidambaram conceded that contentious issues were discussed at the meeting. Speaking to reporters after the meeting he said the CAG report on coal block allocation was also discussed and there was unequivocal support for the PM.

Banerjee’s good humour has put the centre in a quandary. If, as widely reported, the government pushes ahead with notifying the opening up of retail in September, Banerjee’s cautious support on FDI in civil aviation may no longer hold. Government managers said the best bet was for Civil Aviation Minister Ajit Singh to work rapidly, close the deal and only then, let his colleague Anand Sharma move on FDI in retail.

Finance Minister P Chidambaram, who addressed the media after the meeting, said, “We discussed all issues, the most immediate being the current impasse in Parliament. We unanimously agreed that the Prime Minister’s offer of discussion on the CAG report would be again reiterated in Parliament tomorrow. The BJP’s position on the CAG report is unreasonable.”

Chidambaram noted there was “free, frank and cordial” exchange of views on a range of issues including those concerning polity, economics and relations with neighbours.

The TMC chief is slated to meet Chidambaram tomorrow. She is also likely to meet the PM and the Congress president now that she had extended her trip to the capital.

With the full backing of the UPA to the Prime Minister on the coal block issue and the disarray in the NDA, it now seems as if the BJP strategy to keep Parliament on the boil might not work. The UPA felt that the logjam might end as quickly as Monday.

The BJP had attempted to seek Mamata’s support in cornering the government over the recent CAG reports. BJP leaders Shahnawaz Hussain and Rajiv Pratap Rudy had a “chance meeting” with Banerjee at the Delhi airport late last evening. They were reportedly snubbed by the TMC. TMC has described the BJP’s demand for the prime minister’s resignation as “baseless”.

The UPA coordination committee also approved the amendments to the Unlawful Activities (Prevention) Act, which aims at effectively combating money laundering and terror financing, declaring such crimes as terrorist acts. The proposed amendments will now be put before the Cabinet for its approval.

The UPA coordination committee meeting, which was attended by all its principal constituents, will be holding its third meeting immediately after the conclusion of the Monsoon session on September 7.

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First Published: Aug 23 2012 | 12:45 AM IST

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