Congress-led coalition in place,Indian Politics, News Analysis, India News Online

The President, A.P.J. Abdul Kalam, in exercise of his powers under Article 75(1) of the Constitution, appointed Dr. Manmohan Singh the new Prime Minister. He was given the letter of appointment when, accompanied by the Congress president, Sonia Gandhi, he called on the President to hand over the letters of support from the allies and supporting parties of the Congress.

Significantly, the letter of appointment did not mention any requirement that Dr. Singh prove his majority in the Lok Sabha by any particular date. This meant the new Prime Minister may be spared the burden of immediately having to prove his “numbers” and can wait for the normal business of the 14th Lok Sabha to demonstrate support.

Talking to reporters at Rashtrapati Bhavan, Dr. Singh said he felt “humble” and noted that “the nation had given the mandate to Sonia Gandhi.” Standing beside him, Sonia Gandhi said she was happy to be relieved of the “tremendous pressure” that had been mounted on her over the last couple of days to accept the office of Prime Minister. “I think the country will be safe under Dr. Manmohan Singh.”

Dr. Singh reiterated the Congress’ refrain of promoting “reforms with a human face.” Promising to carry forward the vision of the former Prime Minister, Rajiv Gandhi, to make the 21st century an “Indian Century,” Dr. Singh said the new government’s emphasis would be on a model for social and economic development that provides opportunities for the poor to participate in the development process.

Council of Ministers

As expected, the Congress has been quite liberal in allocating berths to its major partners. The ministers were mostly old guard from the Congress with proven loyalty to party chief Sonia Gandhi. As Manmohan Singh never had a lobby of his own, the task was made simpler without any clash of interests. Senior party leaders like Pranab Mukherjee, Arjun Singh, besides trusted aides like Ghulam Nabi Azad, Jaipal Reddy, Natwar Singh, Kamal Nath, P.R. Das Munshi and Mani Shankar Aiyar got Cabinet berths. Surprise inclusions were losers like Shivraj Patil and P.M. Sayeed. Since the Left combine stayed out of the government RJD, DMK and the NCP got key portfolios.

Dr. Manmohan Singh took the oath as the head of a 68-member Council of Ministers, with 18 Cabinet rank Ministers, 10 Ministers of State with independent charge and the rest Ministers of State.

The Congress party will retain key portfolios along with Finance. Pranab Mukherjee is likely to get Home while Arjun Singh is tipped for HRD. Former diplomat Natwar Singh is likely to be made Foreign Minister and former Lok Sabha speaker Shivraj Patil is tipped to be Defence Minister. The allies have 25 seats in the council of ministers and are likely to be given mostly portfolios which will give them domestic clout. Former finance minister P Chidambaram is likely to be the Commerce Minister and NCP chief Sharad Pawar tipped to be the Agriculture Minister, though he had expressed desire to bag the Defence portfolio. RJD chief Laloo Prasad Yadav, is tipped to be the Minister for Railways. Jaipal Reddy may get the portfolio of Information and Broadcasting.

The Cabinet is rich in ministerial talent and experience as it includes experienced hands such as Sharad Pawar, Ram Vilas Paswan, P. Chidambaram. The new Council of Ministers has the requisite geographical spread but uneven regional distribution and gender representation; the seven women members do fall short of the politically correct one-third formula. The Muslims have got better numbers compared to the Vajpayee regime.

The lion’s share has gone to Tamil Nadu, which has, as many as 12 seats in the Council of Ministers, whereas Uttar Pradesh, which traditionally dominated the Congress Ministries, has only two representatives, with only one with Cabinet rank. The story would have been different if the Samajwadi Party which had an impressive tally, decided to join the government. Some claim that a section of the Congress and backed by the RJD supremo Laloo Yadav ensured that the SP was kept out.

There were minor glitches on way to the swearing-in ceremony as Ram Vilas Paswan was sulking after having been denied the Railways portfolio, which has reportedly gone to Laloo Yadav of the Rashtriya Janata Dal. The portfolio has acquired a strange symbolism in Bihar politics, with every senior politician from the State wanting to preside over the Rail Bhavan.

When the Prime Minister was asked about the difficulties in government formation, he conceded that there were “difficulties but all of them were overcome.” He gave all credit to the Congress president, Sonia Gandhi, for the party’s good showing in the elections and reiterated that he would not be where he was today but for her ``as he had never expected to become the Prime Minister.”

Bihar gets bigger slice

The major highlight of the Cabinet formation at the Centre from Bihar’s standpoint has been the political rehabilitation of the former Chief Minister and Rashtriya Janata Dal leader, Laloo Prasad Yadav, who has assumed a political office after being in hibernation for over seven years. Yadav was forced to resign as Chief Minister of Bihar in July 1997 and since then has not held any official post in the wake of the fodder scam cases. He faces six cases covering the conspiracy angle of the fodder scam, besides the disproportionate assets case, which is in the final stages.

Yadav leads the “Bihar brigade,” cornering 11 slots in the Union Council of Ministers. Though numerically the RJD-Congress and the Lok Janshakti Party have raked in the same number of Ministers as there were in the National Democratic Alliance Government, the number of Cabinet Ministers are far less this time round. There were six Cabinet Ministers in the NDA Government while this time Bihar’s share is only four. Besides, Yadav, the other three are Ram Vilas Paswan, Raghuvansh Prasad Singh and Meira Kumar.

Significantly, the former Union Minister of State, Md. Taslimuddin, finds a berth once again in the same capacity. He was forced to resign from the Deve Gowda Government under pressure from the Opposition benches facing as he did almost nine criminal cases. In that sense, he too stands to be rehabilitated at the Central level though in Bihar he happened to be a Minister till his elevation at the Central level. He had defeated Shahnwaz Hussain, a Cabinet Minister in the erstwhile NDA Government.

The other RJD MP, who has found a berth is Jai Prakash Narain Yadav, who quit at the State level following a vigilance case. Apart from Paswan, the other Dalit (low caste) to make it as a Cabinet Minister is Ms. Meira Kumar, daughter of the former Deputy Prime Minister, the late Jagjivan Ram. The three members of minorities elected from the State are Ministers of State, including Taslimuddin. The new faces are M.A.A. Fatmi (RJD) and Shakeel Ahmed (Congress).

As for Jharkhand, the Jharkhand Mukti Morcha chief, Shibu Soren, too has been rehabilitated after being on the sidelines following the JMM bribery case. He still figures in a murder case. It is also a comeback for Subodh Kant Sahay, who was the Union Minister of State for Home in the Chandra Shekhar Government.

Maharashtra: Eye on assembly polls

The large representation of the Congress and the Nationalist Congress Party MPs from Maharashtra in the Manmohan Singh Ministry is seen as an obvious attempt to give a boost to the alliance’s prospects in the coming elections to the Assembly where there is a need to neutralise the anti-incumbency factor visible in the Lok Sabha elections. By bringing in a big team of Centre’s representatives from the two parties the coalition hopes to deal with the voter’s desires, hopes and expectations.

The unusually-large Maharashtra team indicates that the play for the Assembly will see the Centre reassuring voters that the same parties ruling at Delhi and Mumbai will mean easier fulfilment of promises. During the Lok Sabha polls, it was made out by the NCP and Congress that the Bharatiya Janata Party-led Government let Maharashtra down.

It is indeed seen as a bid at a large presence to battle the BJP-Shiv Sena alliance which is disturbingly quite close to the Congress-NCP in vote share. The leads in the Assembly segments within the parliamentary constituencies won or lost are such that the two sides stand virtually on a razor’s edge, each having more or less about the same numbers close to the magic figure of 144; the simple majority will be 145 seats in the Assembly of 288 members.

Tamil Nadu: Major beneficiary

For the first time, the southern state of Tamil Nadu has bagged as many as 12 berths in the Union Council of Ministers, including six of Cabinet rank. The rest are Ministers of State. The previous highest tally for the State was in the outgoing National Democratic Alliance Government with nine Ministers, including two of Cabinet rank.

Now P. Chidambaram, Mani Shankar Aiyar, T.R. Baalu, A. Raja, Dayanidhi Maran and R. Anbumani have been given the Cabinet rank. S.S. Palani Manickam, S. Raghupathi, K.Venkatapathi, Subbulakshmi Jagadeesan, E.V.K.S. Elangovan and R.Velu have been made Ministers of State.

The Dravida Munnetra Kazhagam (DMK) has the largest representation with three Cabinet Ministers and four Ministers of State. Baalu, Maran and Raja are in the Cabinet and Palani Manickam, Raghupathi, Venkatapathi and Ms. Jagadeesan are Ministers of State. While Baalu and Raja were in the NDA Ministry, the others have become Union Ministers for the first time. Maran, son of the late Murasoli Maran, is a Cabinet Minister on his maiden entry into Parliament. For Raja it is an elevation from Minister of State in the previous NDA Ministry to Cabinet rank.

The Pattali Makkal Katchi (PMK), which had two Ministers of State in the NDA Ministry, has two representations now also, including one Cabinet Minister. Dr. Anbumani, son of the PMK founder, S.Ramadoss, has been made Cabinet Minister though he is not a member of either the Lok Sabha or the Rajya Sabha. The other PMK representative, Velu, a retired IAS officer, becomes Minister in his first stint as MP.

Allies fall in line

A Congress-led coalition, headed by Dr Manmohan Singh is finally in place after it took nine days to sort out the expected tug-of-war for plum portfolios among the allies. It was the insistence of the Left parties that wanted as many parties to join the United progressive Alliance, that finally resulted in the ambitious regional parties toeing the line that a secular formation was the need of the hour. The powerful Left combine has opted to give support from outside. But the CPI-M leader H.S. Surjeet, failed in his efforts to give an honourable place to his favourite party, the Samajwadi Party (SP) that emerged as the largest single party from Uttar Pradesh in the Lok Sabha elections with 39 seats.

Among the left parties, the CPI was disappointed in staying out of the government. In fact, it had taken the line that joining the government was important for ensuring it stayed on course. Its hopes were dashed when the CPI-M was divided on the issue and the Kerala lobby preferred outside support as the party had swept the polls against the Congress in the southern state. Its image would be seriously compromised by allying with the Congress at the Centre, the Kerala leaders argued forcing senior leaders like Surjeet and Jyoti Basu to keep off power-sharing.

Nevertheless, with major allies like the DMK of Tamil Nadu, Rashtriya Janata Dal of Bihar, Nationalist Congress Party and the JMM (Jharkhand Mukti Morcha) among the 18 parties backing the Congress coalition, the Manmohan Singh government was assured of a comfortable number of 300 plus. The process to the formation of the new government was not smooth as the initial euphoria among the Congress allies over the defeat of the Vajpayee regime, gave way to greed for key ministries, many of which the Congress wanted to keep for itself.

Though most of the allies adopted an attitude of cooperation, so as not to make things too difficult for 71-year-old Manmohan Singh, it was Rashtriya Janata Dal’s Laloo Prasad Yadav who with 21 MPs is the second largest group in the UPA, who did hard bargaining for a powerful say in the running of the government. As a pressure tactic, he underlined the point that it was a Congress-led government and not a Congress government. By hogging the TV channels and sulking even while asserting that he would do nothing to destabilize the government, Laloo saw to it he was heard and his demands conceded. Senior Congress leaders like Arjun Singh were dispatched to cool down Laloo and prevent him from taking any action that would embarrass Manmohan Singh. Besides, key portfolios, Laloo had been insisting that Bihar will need a massive economic package to get it out of the economic mess and ensure development. For the Congress it was essential that Laloo stayed in the government to avoid any risk to the stability of the government.

That was true for Sharad Pawar as well. His nine MPs and the forthcoming Maharashtra assembly elections in October this year, made Sharad Pawar of NCP a key figure and he did extract his pound of flesh. The decision of Sonia not to accept the post of PM came as a blessing in disguise for NCP’s Sharad Pawar. For Pawar, working under Sonia would have been difficult. Having once crusaded against her foreign origin (he left Congress on this count), he had to push the issue to backburner due to electoral compulsions. But the party feared the issue was likely to come back at it. Working under Sonia in the Union government would have given the BJP-Shiv Sena an issue to highlight in the Maharashtra state polls due later this year. “There was certain uneasiness (with Sonia being the PM) which is over now,” admitted a party insider.

Similarly, the DMK with its allies having 20 MPs along with four of the MDMK, was in a win-win situation. The DMK had earlier enjoyed power with the Vajpayee regime for nearly five years.

The Samajwadi party finally decided not to join a Congress-led government, but will extend support to it from outside. The SP general secretary, Amar Singh, said the decision was taken as the Left parties too had decided against joining the government. “We have always maintained that we will go by whatever the Left parties decide. Since they have decided to stay out, there is no point in our joining the government,” he said. The SP also made it clear that as far as it was concerned, it had no objection to Manmohan Singh taking over as the Prime Minister.

But despite a big chunk of MPs, the SP found to its dismay that its support was not being sought by the Congress as a section of the party felt to revive the Congress in UP, it was necessary to keep out the SP. Besides, the hostility of RJD’s Laloo Prasad Yadav to Mulayam was well known and there was little possibility of both the parties co-existing in the UPA.

Sonia’s renunciation

Earlier, Dr. Singh had been “nominated” the “Leader of the Congress Party in Parliament (CPP) to form the government,” after Sonia Gandhi stepped down as the leader and was instead elected CPP chairperson. It was in her new capacity as CPP chairperson that she “nominated” Dr. Singh to head the government.

Sonia’s decision not to accept the post of Prime Minister did not go well with the party leaders and MPs who mounted lot of pressure on her to review the decision. The CPP meeting in which Sonia declined to accept the post of PM was marked by high emotion as MPs vied with one another to plead that she had to accept the decision of the people and the party.

Sonia Gandhi, however, remained firm. In her assurance to the CPP, she said all the members who were upset or disappointed should know that she would remain in politics. She asserted that she would continue as Congress president and chairperson of the Congress Party in Parliament for as long as they wanted. “I am one of you. And nothing will ever change that.”

The formal “transfer of power” took place at a closed-door CPP meeting in the Central Hall of Parliament with none of the scenes of protest and anguish that were witnessed earlier.

The following are the excerpts from the text of the statement by the Congress president, Sonia Gandhi at the Congress Parliamentary Party:

“When I spoke to the Congress Parliamentary Party yesterday, I expected that there would be some disappointment and some sadness. But I have been totally overwhelmed by the outpouring of emotion from nearly every corner of our country. And I have been humbled by the love and affection that has been so spontaneously expressed.

“To all of you who are upset or disappointed, I have this to say: I am not going anywhere. I am still very much in politics. I will continue as Congress president and chairperson, Congress party in Parliament for as long as you want me to. I am one of you. And nothing will ever change that.

“I entered politics out of a sense of duty and commitment. My family has always treated politics as part of a crusade to create a better India. Indiraji and Rajivji made the supreme sacrifice for our nation. Their examples inspired us all and speaking for myself, I know that I derive my strength from their courage. No matter how much adversity I have faced, it is nothing compared to what they had to go through. Today, it is their strength and their inspiration that guide me and the Congress party.

“I understand your disappointment. But I appeal to you to understand the depth of my sentiment when I say that I cannot reverse my decision. We live in times when politics is about power. Let us show the world that for the Congress party, politics is about values and integrity.”

In an unusual break from political tradition, Sonia had earlier stunned the party and the media saying she had followed her “inner voice” on the question of becoming prime minister and “today, that inner voice tells me I must humbly decline this post.”

Projecting her decision as one of renunciation, she declared: “Power for itself has never attracted me, nor has position been my goal. My aim has always been to defend the secular foundation of our nation and the poor of our country...”

According to observers, one of the factors that apparently influenced Sonia was that the BJP drive will introduce an element of divisiveness in the country’s politics. By opting out of the race Sonia achieved twin objectives-her public image in the eyes of even her critics went up, second, the BJP had been effectively neutralized as it had lost its main focus of attack. It was also suggested that the children of Sonia were worried the “hate campaign” against her could pose a serious threat to her. By hitting a high moral ground, Sonia had also shown a lesson to the power-hungry in the party. Her renunciation of PM’s post to strengthen the party was seen as a ‘supreme sacrifice” by many.

But there was also an uncharitable view to the entire drama. It was being asked why did she choose to be elected as leader of the CPP if she had no intention of staking claim to the Prime Ministership. Going by the version given by her son Rahul, she had decided not to become PM on May 13 itself when there appeared the possibility of the Congress-led combine pushing out the NDA from power. She could have avoided the emotional scenes and party workers’ hysteria if she had told the MPs to elect a person of her choice as CPP leader. Another view going round was that by opting out of the PM stakes now, she was making ground for the elevation of her son Rahul five years hence, when there would not be a murmur of protest and the dynasty would be intact due to a break.

Sources have disclosed the Congress president while declining the top job was guided by three pragmatic reasons. First, Sonia Gandhi’s core team brought her the feedback that the “foreign origin” issue was “not entirely irrelevant” among the masses. The assessment was that the agitation threatened by some Sangh Parivar (RSS family) leaders could gain momentum once she took oath. It was noted that Uma Bharati and Govindacharya had even met the President. Significantly, Congress leader Salman Khurshid said Vajpayee should have stopped the agitation - an indication that the Congress leadership was worried about the fallout of a protracted anti-Sonia movement. Also, the Samajwadi Party’s letter of support to the President did not mention Sonia Gandhi as the coalition leader. Congress strategists apparently saw it as a lack of commitment on SP’s part.

There was also a legal angle. A hearing on a PIL (Public Interest Litigation) in Delhi High Court, which raises among other things the issue of Mrs Gandhi as a naturalised citizen occupying the PM’s post, has been slated for 26 May. That would have been within a week of Sonia Gandhi taking up the top job. The court had ordered filing of an amended petition making the Congress and Sonia Gandhi party to the case.

The second concern emanated from the “sounding out” of a number of “friendly members of Delhi’s establishment”. The feedback was that Mrs Gandhi assuming the top job would lead to “continuous scrutiny”. Controversies could erupt in contexts where another Prime Minister would have no problem, it was felt.

Third, Sonia Gandhi’s team also took a dispassionate look at the composition of the government. With the Left not participating and the Congress not having the numbers to call these parties’ bluff, and with tensions on economic policy already evident, the government was assessed by some members of Mrs Gandhi’s inner circle as “trouble-prone”. Her advisers noted that the likes of Laloo Prasad Yadav and JMM’s Sibu Soren in her Cabinet would be a serious disadvantage.

The Common Minimum Programme : Salient features

What the Prime Minister called “Reforms with a Human Face” has been translated into a package of proposals known as Common Minimum Programme (CMP). Among others, the CMP guarantees 100 days of minimum-wage employment to every rural household, a national health insurance scheme for the poor, farm insurance schemes, rural credit and “protective legislation” for all agricultural workers.

On Education and Health, the two sectors in dire need of reform, the CMP proposes increased spending: a cess on central taxes to increase public spending on education to 6% of the GDP from the current 3.5. And an increase in expenditure on health to 2% of the GDP over the next five years.

On Disinvestment, the CMP tries to walk the tightrope saying that privatisation of PSUs will be on “a case to case basis” adding : “The UPA (United Progressive Alliance) will retain ONGC, IOC, HPCL, BPCL, GAIL, NTPC, SAIL and BHEL in the public sector, while disinvestment takes place.” Assuring to give “full managerial and commercial autonomy to successful, profit-making companies operating in a competitive environment,” the draft CMP says that chronically loss-making companies will either be sold off or closed after all workers have got their compensation.

The CMP allows PSUs and nationalised banks to “enter the capital market to raise resources and offer new investment avenues to retail investors.”

Significantly, a law on communal violence providing for investigations by a central agency and prosecution by special courts is proposed.

The other features of the CMP are discussed below :

Economy

A growth rate of 7-8% a year and a commitment to economic reforms that stimulates growth, investment and employment.

On WTO, the draft CMP says the government “will use flexibility afforded in existing WTO agreements to fully protect Indian agriculture and industry.”

Public investment in agriculture and irrigation will be stepped up in a significant manner - particularly in the Central and eastern regions.

The rural cooperative credit system will be back with “flow of rural credt doubled in the next three years covering small and marginal farmers”.

No reversal of the privatisation programmes underway in infrastructure sectors.

A National Employment Guarantee Act to provide legal guarantee for at least 100 days of employment on “asset-creating public works programmes” at minimum wage.

No “automatic hire and fire” policy but “flexibility” to industry in the matter of labour policy ensuring that workers’ interests are protected.

Encourage foreign institutional investors.

Major tax reforms, broadening of tax-payers base and a stable and conducive tax rate for growth and investment, detailed roadmap to be unveiled in Parliament in 90 days.

Strict action against market manipulators in tandem with further strengthening of SEBI.

Subsidies to be targeted sharply at the poor and the truly needy.

Committed to value-added tax.

Industry

Expansion of social security, health insurance and other schemes for unorganised sector workers such as weavers, handloom workers, fishermen, beedi workers.

Steps to be taken to revive industrial growth and put it on a “robust” footing by continued deregulation.

Set up a national manufacturing competitveness council to provide continuing forum for policy dialogue to energise and sustain growth of manufacturing industry.

Full managerial autonomy to public sector banks, interest rates to provide incentive to both savers and investors and regulations to be made more effective for banks, particularly in cooperative sector.

Education

Six per cent GDP to be spent on education.

Take steps to reverse the trend of communalisation of education set in the past five years during the BJP-led NDA govt.

Introduce cess on all central taxes to finance the commitment to universalise access to quality basic education.

Set up a national commission on education to allocate resources and monitor programmes.

Ensure autonomy for institutions of higher learning and professional education.

Academic excellence and professional competence sole criteria for appointments to ICHR, ICSSR, UGC, NCERT etc.

Cooked nutritious mid-day meal scheme across the country in primary and secondary schools.

Health

Raise public spending on health to at least two per cent of GDP over the next five years.

Introduce national scheme for health insurance for poor families, focus on primary healthcare.

Step up public investment in programmes to control communicable diseases, provide leadership to national AIDS control effort.

Foreign Affairs

Highest priority to building closer relations with neighbours.

Accord dialogue with Pakistan on all issues on a “sustained basis” and “pursue seriously” talks on the border issue with China.

Support peace talks in Sri Lanka that fulfil the legitimate aspirations of all linguistic and religious minorities within the territorial integrity and solidarity of the island nation.

Maintain the “independence” of India’s foreign policy stance on all regional and global issues while pursuing closer strategic and economic engagement with the US.

Fully protect national interest, particularly of farmers at WTO negotiations.

Administration

Top priority to introduce state funding of elections.

Set up an administrative reforms commission for detailed blueprint for revamping the public administration system, emphasis on e-governance.

Make right to information act more progressive, participatory and meaningful.

Water Resources

Ensure long-pending inter-state disputes on rivers and water-sharing like the Cauvery are settled amicably at the earliest.

Examine the techno-economic feasibility of linking the rivers of the country starting with the south-bound rivers.

Install desalination plants along the Coromandel coast starting with Chennai to end acute drinking water shortage in cities.

Defence

Repeal of POTA while strictly enforcing existing laws to deal with terrorism.

Eliminate delays in modernisation of armed forces, “spend fully” at the earliest all funds earmarked.

Set up a new department of ex-servicemen’s welfare in the Defence ministry.

Re-examine the long pending issue of one-rank, one pension, the document said.

Appoint a full-time national security adviser

Employment

Enact a national employment guarantee act to provide a legal guarantee for at least 100 days of employment on asset-creating public works programmes every year at minimum wage for every rural household.

Establish a national commission to examine problems facing enterprises in the unorganised, informal sector.

Revamp functioning of KVIC and launch new programmes for modernisation of coir industry, handlooms, prowerlooms, handicrafts etc.

Science

Mobilise the skills and expertise of scientists, technologists and other professionals working abroad for institution-building and other projects in the country.

Introduce programmes that strengthen country’s vast science and technology infrastructure.

Science and technology development and application missions to be launched in key areas covering both global leadership and local transformation.

Minorities

Enact a separate comprehensive law on communal violence under which investigations would be carried out only by central agencies and prosecution by special courts and payment of uniform compensation.

Await verdict of courts on Ayodhya while encouraging negotiations between parties to the dispute for an amicable settlement.

Amend Constitution to establish a commission for minority educational institutions to provide direct affiliation for minority professional institutions to central universities.

Set up a national commission to examine the issue of backwardness and adequate representation of all religious and linguistic minorities.

Infrastructure

Encourage public-private partnerships in expansion of infrastructure like roads, highways, ports, power, railways, water supply and sanitation.

Committed to comprehensive programme of urban renewal and massive expansion of social housing in towns and cities, thrust on slum-dwellers.

Complete existing irrigation projects in three years.

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