The Congress rushed to tamp down home fires over opening the retail sector to foreign direct investment (FDI), but government managers said there was no danger to the United Progressive Alliance (UPA) government, even as an all-India traders’ bandh on Thursday was moderately successful.
Party leaders conceded that members of Parliament (MPs), especially from Uttar Pradesh, were angry that the party had unleashed a ‘killer beast’ months before the Assembly elections in the state, leaving them to the mercy of a concerted assault — both from the Bahujan Samaj Party (BSP) and the Samajwadi Party (SP). “We know it is a good step that will eventually benefit the people of India. But did another front have to be opened now?” asked a Congress MP from the state.
The Congress met MPs, alliance partners and anyone who would listen to the government’s position. A new list of 11 spokesmen, mostly young MPs and ministers, was announced on Thursday. A list that includes young ministers like R P N Singh and Sachin Pilot will now be the Congress’ authorative voice on all subjects, including retail.
Commerce and industry minister Anand Sharma was also present at meetings of Trinamool Congress (TMC) and Dravida Munnetra Kazhagam (DMK) with Prime Minister Manmohan Singh and finance minister Pranab Mukherjee this morning. TMC leader Sudeep Bandyopadhyay told the Prime Minister that the UPA was not a Congress government. “There could be occasions when allies could make suggestions to the Congress. It is a combined government of allied parties,” he said. He demanded a coordination committee be set up so that allies could be consulted before the government takes a “sensitive” decision. “Why is Pranabda running after the BJP and Left parties? All you needed to do is to talk to us,” he said.
As Sharma tried to intervene, Mukherjee snapped: “You keep silent. Who wants to listen to you? We want to hear them (allies) speak.”
Bandyopadhyay said his party was a small part in the government, which had to learn from the newspapers that FDI had been allowed in retail.
“The Prime Minister assured us that such things would not happen in the future. That is the first leg of victory,” he added. Railway minister Dinesh Trivedi stayed away from a scheduled Cabinet meeting.
DMK leaders emerged from the meeting to say their stand on opposing retail FDI was unchanged. But the ground situation in Tamil Nadu was such that it was politically impossible for them to be on the same side as the AIADMK, which is also opposing the policy. The party is weighing its ideological options.
Allies as well as a large section of the party might like the government to backtrack on the decision, but there is no indication that anyone in the government is even thinking along those lines. Now, the issue is managing the numbers as and when an adjournment motion comes up. When discussed, the motion — which has to be completed on the day it starts — will see the same kind of nailbiting finish as the Lok Pal Bill.
The party would like to see some tweaking of the policy for some solace. Therefore, a proposal that mandatory procurement from small and medium enterprises (SMEs) be increased, has been doing the rounds. But, this could be the concession announced on the floor of the House.
The Bharatiya Janata Party (BJP), meanwhile, has said it has put off a no-confidence motion, as that will, in fact, have the effect of uniting the government with its allies.
Interestingly, no one in Parliament claimed political ownership or credit for the bandh of traders that caused a shutdown of 50 million shops across the country, although several office bearers from the Swadeshi Jagaran Manch, led by Rashtriya Swayamsevak Sangh (RSS), were involved in its organisation. Traders claimed that if the FDI policy was not rolled back, they would intensify the stir. The bandh got backing of BJP, CPI(M), CPI, JD(U), BSP and SP and more than 15,000 trade bodies that participated across the country. Sharad Yadav and Gurudas Dasgupta were seen backing the traders at Jantar Mantar in Delhi.
“A trader wearing torn clothes, in the clutches of a (plastic) dragon, reflected the woes and traders’ concerns at the dharna,” said Praveen Khandelwal, Secretary General of the Confederation of All India Traders (CIAT).
Khandelwal told Business Standard: “We are tomorrow having a couple of meetings in Delhi to discuss the future course of action.” He added that they would have a national governing council meeting in Nagpur on December 11 and 12.
Trade leaders pointed out that FDI would not only impact the traders, but 220 million others, including transporters, hawkers, daily wage earners, employees, etc, would also be affected. The FDI in retail would also impact farmers, they added. According to them, the government has failed in providing the infrastructure required for smooth retail trade in India and keeping mass-scale hoarding by the domestic corporate houses under check. “To cover up its failure, blaming the traders cannot be tolerated,” trade leaders said.
The issue of the adjournment motion will be decided on December 6. Parliament will meet briefly on Friday and reconvene after a long weekend on 7 December.
