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UPA Government : PM for a new deal with the Left

	November 01, 2004

Reports say that the Prime Minister is considering striking a new deal with the Left parties. One the one hand, he has promised to fund their pet social projects like rural employment, health and education from the budget allocations. But this will be subject to the Left parties allowing the Government to seek investment from all possible sources in sectors like Telecom, Civil Aviation and Roads. In other words, Dr. Manmohan Singh feels that the Left should waive its objections to foreign investment in every possible infrastructure area.

Officials say that the Government simply does not have the kind of money needed to keep the promises in the coalition’s common minimum programme (CMP). It is proving difficult to mop up funds to run the rural employment programme that pledges to provide employment to every able-bodied citizen, aged 18 years and above, for one hundred days in a year. Similarly, pending railway projects will require Rs.45,000 crores for completion.



Left yields to petrol price hike

The Left parties have said that they are not averse to a hike in petrol and diesel prices in the present scenario. This is a change from their position in June when they had launched a countrywide agitation against a hike in the prices of petroleum products. Petroleum Minister Mani Shankar Aiyer is reported to have held several rounds of talks with Left leaders like CPI(M) politburo member Sita Ram Yechury. Yechury said they understand that the Government is under tremendous pressure with crude oil prices touching nearly $56 a barrel. But he said the Left will continue to oppose hike in the prices of LPG and kerosene.



Tones down position on foreign loans

West Bengal Chief Minister Buddhadeb Bhattacharjee has said that even though the Left parties are opposed to some economic policies of the UPA Government, they are not going to bring it down. Addressing a Confederation of Indian Industry (CII) gathering in Delhi, he said the Left would not do anything drastic like withdrawing support. “Maximum we shall agree to disagree”, he said.

Leaving their leaders in Delhi to rail against foreign experts, the Marxists in Kerala have decided to follow the example set by their comrades in West Bengal. Four of Kerala’s five city corporations headed by CPI(M) mayors are trying to get a $500 million loan from the Asian Development Bank to help clean up their cities in time for the local elections next year.

On the other hand, Left parties have opposed the Central Government’s decision to go in for disinvestment in 35 profit-making public sector undertakings. They said there should be a discussion on the issue as it is a matter of vital concern to the people and the country. They said the move to disinvest in the public sector units amounts to back door privatisation.



NDA appointed Governors replaced

The Manmohan Singh Government has replaced or shifted several state Governors appointed by the previous National Democratic Alliance Government. In some cases it has been done despite the opposition of state Governments.

Tamil Nadu Governor P.S. Ramamohan Rao has been forced to quit despite Chief Minister J.Jayalalithaa writing to the Centre for his retention and also raising the matter in the Supreme Court. The apex court, however, did not give any interim relief to the State Government. This left P.S. Ramamohan Rao with no option, but to give in to the suggestion from the Union Home Ministry to submit his resignation.

Andhra Pradesh Governor S.S Barnala who is thought to be friendly with the Opposition DMK in Tamil Nadu has been shifted to Tamil Nadu.

Quite a bit of controversy has been created about Ramamohan Rao’s replacement as the Tamil Nadu Government placed before the Supreme Court the transcript of the telephonic conversation between Union Home Minister Shiv Raj Patil and Chief Minister J. Jayalalithaa on the issue. The transcript as published in newspapers makes it amply clear that the Centre just informed the Chief Minister of the decision to change the Governor, but did not consult her as recommended by the Sarkaria Commission. The Centre’s position is that it is not bound to act upon the recommendations of a Commission till they are sanctified by an act of Parliament or an amendment of the Constitution. Several people have also taken an exception to the Tamil Nadu Government’s action in making public the conversation between the two constitutional functionaries. But here also the law does not say anything.

Sushil Kumar Shinde who could not continue as Chief Minister of Maharashtra has been appointed the Governor of Andhra Pradesh.

Another Governor, Madan Lal Khurana of Rajasthan, has quit on his own to rejoin active politics in the national capital, Delhi. Khurana was appointed as Rajasthan Governor after the party’s defeat in the Assembly elections in Delhi, but his heart was always in local politics and he was on the look out for returning to his prime love. One of the first issues he was planning to raise after return to Delhi politics was shifting of industries from residential areas. But much of the steam in this respect has been taken out after the Delhi Government’s decision to approach the Supreme Court for retaining industries in localities where more than 70 per cent of the area is occupied by industrial units.

The Governor of Punjab, Justice Om Prakash Verma, has resigned after the Centre asked him to do so. The Bihar Governor Justice M. Rama Jois has also quit.

The Centre’s action in shifting NDA appointed Governors has been sharply criticised by the Opposition. BJP president L.K. Advani was particularly critical of Home Minister Shivraj Patil for showing disregard to the Sarkaria Commission’s recommendations that call for a consultative process in the appointment of Governors. He said the Commission’s recommendations as accepted by the Inter-State Council clearly say that the Centre should consult the Chief Minister before appointing a Governor. Advani said the Centre’s action shows the inherent nature of the Congress to ignore norms.

The UPA allies have said that they should be consulted on the appointment of Governors. A senior RJD leader said it is a coalition Government and it is only fair that allies are consulted before the appointments are made. Reports say that several of the UPA constituents are surprised at being kept out of the consultation process for the appointment of Governors.