nation UPA GOVERNMENT STALLED AGENDA TIME TO ACT: Manmohan with Sonia FDI The Left has prevented higher FDI in telecom, insurance and banking ■ By Shankkar Aiyar with Priya Sahgal and Neeraj Mishra REFORMS V. Narasimha Rao, the last Machiavelli of the Congress, had a theory The Left and trade unions that a crisis can be resolved by another crisis to consolidate control. have stalled the urgently In a sense Prime Minister Manmohan Singh has had a fair share of needed labour, pension and banking reforms opportunity. Why just last week he barely emerged from the theatre of rumours of his resignation to be faced with the dastardly act of the DISINVESTMENT Pserial blasts in Mumbai. Nobody quite expects articulation of a “hot pursuit The DMK and the Left thesis” or rhetoric of the Bush variety, malapropism et al from Manmohan. vetoed disinvestment in Tuesday presented an opportunity to rise above the din of a fractious coali- PSUs like BHEL, Neyveli and NALCO tion and assume the station he presides over. Sure his hands are tied given the overwhelming influence of vote bank politics. The Left had cornered him ORGANISED RETAIL on the Iran vote, while his own party had passed a resolution in Kerala FDI in retail can spur Assembly for the release of Abdul Nasser Madani, the mastermind in the employment but corporate Coimbatore blasts. But India expected its prime minister to convey anger and lobbying has blocked it anguish. Manmohan, however, chose to deliver a tame “commitment to fight PETROLEUM PRICES terror” missive, while Home Minister Shivraj Patil confounded expectations Despite dismantling of with a pusillanimous “confront it with fortitude” advice. APM, pricing still depends Perhaps the hesitation to confront and assert stems from his acute on political expediency awareness of his position. He is but an appointed prime minister, almost the POWER SHORTAGE CEO appointed by the largest shareholder and the second choice of the “inner No political will to combat voice”. The BJP’s charge of calling him the “weakest prime minister” may Rs 30,000 crore of power sound like sloganeering but Manmohan has far too often conveyed the pic- theft projected as leakage ture of a cornered, helpless ruler. Yes, he has compulsions and this is a 19- HIGHWAYS party coalition. Indeed in June 2004 INDIA TODAY listed out these very State governments have issues when he took charge in a cover story “What can he do?” Sure there failed to acquire land for are bound to be situations where there is give and take or a rollback but not major road projects FOOD PROCESSING Public investment in post-harvest infrastructure and shift to a single window for clearing projects is mired in PARALYSIS OF inter-ministerial squabbles THE PRIME MINISTER’S HESITATION TO CONFRONT AND ASSERT HAS DERAILED REFORMS AND AFFECTED GOVERNANCE AS BOTH ALLIES AND CONGRESS LEADERS HOLD THE GOVERNMENT TO RANSOM LEADERSHIP 18 INDIA TODAY ◆ JULY 24, 2006 JULY 24, 2006 ◆ INDIA TODAY 19 nation UPA GOVERNMENT SAURABH SINGH outright surrender. Last week the DMK Within hours of the threat the threatened to pull out its ministers un- Government put on hold all disinvest- less the proposal to disinvest in Neyveli ments. That week the prime minister Lignite Corporation (NLC) was put off. also capitulated when Health Minister JUMBO The prime minister was aghast and ap- Anbumani Ramadoss sacked parently asked the emissaries Telecom P. Venugopal as director of AIIMS (a deci- Minister Dayanidhi Maran and sion that was overturned by the court). Environment Minister A. Raja, “What On both occasions the prime minis- CIRCUS will people think of me?” But it is not ter could have called the bluff of the re- Solo performances just his halo but the Government’s eco- gional parties. After all the UPA is simply have spoilt the nomics that is under threat. a collection of parties which have come UPA show together on the construct that they act is both the DMK and the Left can’t be with the NDA. But that requires parties were clearly reneging on the political sagacity of an Indira an agreement. On November 21, Gandhi which is sorely missing. Instead F2005, the Left had agreed to the prime minister was asked to consider disinvestment subject to gov- backtrack. Sure as Sharad Pawar con- ernment stake not dropping below 76 cedes, “Manmohan treats his allies per cent in eight select profit making with respect and Sonia Gandhi hasn’t PSUs. The money was to be parked in interfered with allies’ ministries”. But the National Investment Fund (NIF) the allies have issues with the Congress which was notified on November 23. and the UPA. GIREESH GV Indeed, subsequently the Cabinet ROLLBACK RAJ: Tamil Nadu Chief Committee on Economic Affairs (CCEA) Minister M. Karunanidhi with Maran cleared the sale of equity in PFC and Unlike the monthly show which NMDC without any protest from the DMK. George Fernandes hosted during the On January 12 the CCEA took up the NDA, the UPA Coordination Committee case of NALCO and NLC and agreed to has met just 10 times in 26 months. postpone it till polls. The proposals Allies cite how the Congress has insti- were cleared on June 22. In fact, tuted extensions to superannuated bu- Panchayati Raj Minister Mani Shankar reaucrats without consulting them. It Aiyar’s was the lone voice in dissent as would seem that the Congress is obvi- he questioned the decision recounting ously not satisfied cornering 23 of the 34 the party’s stance on disinvestment Cabinet posts. The allies are peeved that NAMES CONGRESS DMK RJD NCP PMK TRS JMM LJP IUML when in opposition. While the DMK all important posts are being cornered claims its ministers were absent, they by the Congress. Lalu Prasad Yadav for MINISTERS 56 763 2 2 1 1 1 didn’t protest when the agenda was instance had to lobby for three months (23 Cabinet, (3 Cabinet, (3 Cabinet, (1 Cabinet, (1 Cabinet, (1 Cabinet, (1 Cabinet (1 Cabinet (1 MoS ) circulated. Not until the Left issued to get Ram Jethmalani (who is fighting 33 MoS) 4 MoS) 3 MoS) 2 MoS) 1 MoS) 1 MoS) minister ) minister ) veiled threats about a realignment and his fodder scam cases) nominated to the bete noire AIADMK chief J. Jayalalithaa upper House. Allies are also sensitive LS MPS 146 16 23 10 6 5 5 4 1 raised the banner of revolt. about policy. The DMK for instance is UPA COLOURS UPA 20 INDIA TODAY ◆ JULY 24, 2006 JULY 24, 2006 ◆ INDIA TODAY 21 nation UPA GOVERNMENT HEMANT CHAWLA DIVIDED WE STAND: Manmohan Singh has been cornered in the war with the allies and within the Congress upset that Doordarshan chose to ac- man if you so desire.” Worse, corporate lobbyists rule the commodate Jaya TV when Sun TV It is not just economic policies. A roost. Take FDI in retail. Every study pulled out of DD’s platform. It wasn’t group of ministers (GoM) ruled that concludes that opening up of retail will consulted on the controversial reservation in the private sector enable investment and employment. Broadcast Bill either. Allies point out requires a constitutional amendment But ministers are happy to play the that it’s the Congress ministers—be it but that hasn’t stopped Social Justice tune of domestic companies to block Natwar Singh or Law Minister H.R. Minister Meira Kumar from playing to FDI. There is also a new wave to thwart Bhardwaj who came up with the idea the gallery. When Manmohan set up a investment in steel by blocking alloca- of an ordinance for the office-of-profit GoM to resolve the new quota riddle, tion to iron ore. Manmohan himself is issue—have embarrassed the UPA. Arjun used allies Lalu, Ramadoss and aware that even flagship schemes like The day the disinvestment process Maran to railroad the GoM a few min- Rural Employment Guarantee and was put off Finance Minister P. utes before the Government cele- Bharat Nirman are hit by turf wars. Chidambaram and Defence Minister brated its second anniversary this May. Clearly Manmohan has not been Pranab Mukherjee went to assuage able to put a lid on this. The party the prime minister and suggested the inisters are also busy attacking blames him for it and is peeved with allies be spoken to. A miffed each other. Chidambaram is the spin doctoring of the PMO. “How can Manmohan apparently asked them to one target. His sins include in- the prime minister feign innocence on fix the dissidence within first. At the Mtroducing the new Saral form decisions of his own government?,” CWC meet last week General Secretary and encouraging raid raj. But what asks an MP. Those close to Manmohan V. Narainsamy was set up to attack the does a finance minister do in a profli- believe that the party has let him Government on NALCO and NLC for the gate regime? Elsewhere a letter writ- down. The truth probably lies betwixt. chorus to rhyme in. ten by Sonia Gandhi to the prime True the party must align policy to the On price rise too, it was minister on Free Trade Agreements political mandate. As Groucho Marx Congressmen who attacked the was leaked twice to the media to em- said, the party must analyse if its pol- Government. True, the Government barrass both Commerce Minister icy “will play it out in Peoria” or rather was caught napping but the venomous Kamal Nath and Manmohan. A minis- Jaunpur in the Indian context to un- attack put the Reds to shame. Not ter of state apparently called up a BJP derstand the impact.