23.8.12

Didi @ the UPA meet


In a setback to the government’s plan to ease foreign investment rules for multibrand retail and civil aviation, Trinamool Congress chief Mamata Banerjee refused to discuss the issue at the UPA coordination committee meeting, citing protocol.
The West Bengal CM said according to the rules of engagement, allies should be alerted in advance about any issue on the agenda. Mamata is learnt to have said she could not discuss the issue without consulting her party.
Mamata has been the chief opponent to the government’s reforms plan, forcing it to put on hold decisions on allowing foreign stores to set up multibrand outlets and permitting foreign airlines to acquire up to 49% stake in Indian carriers.
Her decision to attend the coordination committee meeting had raised expectations that Congress leaders would be able to convince her to soften her stance.
Defence minister A K Antony was last week flown to Kolkata to get Mamata on board but the Bengal chief minister is still to agree to the proposal. Commerce & industry minister Anand Sharma has told industry captains that the government is planning to announce an FDI package around mid-September.
Mamata’s support on the twin issues on which a decision is pending is critical given that Samajwadi Party, Left, Janata Dal (United) and Biju Janata Dal have made public their position against allowing 51% FDI in multi-brand retail, a decision that UPA was forced to put on the back burner in November following the Trinamool Congress chief’s protests.
The government is keen to push the FDI proposals to signal to overseas investors that the Manmohan Singh government is back with a reforms mindset after unleashing a series of tax law changes that hurt investment sentiment.
Apart from FDI, at the UPA coordination committee meeting, DMK raised concerns on the procurement of copra (dried coconut kernel) and demanded Nafed be assigned the task. Sources said agriculture minister Sharad Pawar agreed to the proposal although a plea to raise the minimum support price for paddy was turned down.

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