This Article is From Nov 30, 2012

Government preps for FDI vote: what happened at cabinet meeting

Government preps for FDI vote: what happened at cabinet meeting
New Delhi: Next week, the government's strength will be tested when parliament votes on one of its flagship economic reforms, the decision to allow foreign supermarkets to sell to Indian customers.

The government had hoped to avoid a vote, insisting that the reform had been cleared as an executive decision.  But with the opposition rejecting its suggestion to a debate without a vote, parliament was paralysed for several days.  The government agreed to a vote yesterday to end the deadlock.

At a cabinet meeting last evening, sources say the focus was almost exclusively on the strategy to win the vote, which is non-binding, but has major implications for the government.  If it loses the vote, the opposition may increase pressure to roll back the reform, a possibility the Prime Minister has ruled out in the past.  Losing the vote will also jeopardise the government's initiative to introduce other reforms,  including allowing more Foreign Direct Investment or FDI in the insurance and pension sectors.

Sources say the Prime Minister asked parliamentary affairs minister Kamal Nath to explain the government's position ahead of the vote.  Mr Nath allegedly said that while the government is in a comfortable position in the Lok Sabha,  it does not have the numbers it needs in the Rajya Sabha.  The minister reportedly said that once the vote in the Lok Sabha is won (the house is likely to debate the reform in retail on Tuesday and vote on Wednesday), the government will find it easier to persuade other parties and allies to back it in the Rajya Sabha.

Another minister apparently disagreed, stating that "Our victory in the Lok Sabha will make the opposition in the  Rajya Sabha very aggressive. We have to be careful."

When a senior minister stressed the need to win the vote in both houses to preserve the government's authority ahead of the general elections in 2014, the Prime Minister reportedly said he is confident that  Mr Nath will deliver.

(With inputs from agencies)


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