New Delhi:
Opposition parties have given a call for a nationwide bandh today to protest the government's reform measures announced last week. The government, taking some politically tough decisions had hiked the price of diesel by Rs 5 per litre, capped the supply of subsidised liquefied petroleum gas (LPG) cylinders to six per household and cleared 51 per cent Foreign Direct Investment or FDI in multi-brand retail - reforms, which saw its biggest ally, Mamata Banerjee, pull out of the UPA.
Today's strike against these new policies has won the support of parties ranging from the Left to the BJP, and crucially, Mulayam Singh Yadav, whose Samajwadi Party is now key for the government's survival. The Samajwadi Party, which has 22 MPs and was for long considered the Congress' Plan B if Mamata Banerjee ditched the UPA, has been playing hard to get. The SP has been vehemently opposed to FDI in retail and has told the UPA that it cannot take its support for granted. "Let the Congress be enlightened," he said yesterday, of the political situation, "that it has to give people more than corruption and rising prices."
The Left Front will also be holding a 12-hour strike in West Bengal to oppose the Centre's new reforms. "The government is making a false claim that oil companies are facing losses. ONGC, Bharat petroleum, Hindustan petroleum are making profits and not losses. So, there is no reason for increase in the prices of oil. This will increase inflation and prices of all commodities," CPM General Secretary Prakash Karat had said.
Meanwhile, coming as a huge relief to the UPA, which is now in a minority in Parliament after the Trinamool Congress announced it was exiting the Congress-led ruling coalition, Mayawati's Bahujan Samaj Party (BSP) has said it will not participate in the nation-wide strike even though the party opposes FDI in retail. The Congress is now looking at the BSP, which supports the UPA from outside, as its best bet to make up the numbers it needs to survive. The BSP has 21 MPs, two more than the Trinamool Congress.
The DMK, a member of the UPA with 18 MPs, has said it remains with the government, though it will participate in nationwide protest against FDI in retail, and the new diesel prices. Sources in the Southern party say that the DMK has decided "not to embarrass the UPA" and that its course will not be affected by Ms Banerjee's pull-out.
Though the policy to allow 51 per cent FDI was cleared first in November by the cabinet, it was shelved after Ms Banerjee threatened to pull out of the UPA. Sources say that last Friday, when the cabinet decided to implement the reforms, many senior ministers were also caught off-guard. The policy had not been listed in notes circulated before the meeting. Though Commerce Minister Anand Sharma had a phone conversation with Ms Banerjee the night before, he did not refer to FDI in retail. The government had informed other allies Sharad Pawar, Farooq Abdullah, and TR Baalu about its plans - allies who it was confident would not block the reform.
The new reforms, designed to revive a sluggish economy, means global firms such as Wal-Mart can set up shop with a local partner and sell directly to consumers for the first time. Like the Left and the BJP, Ms Banerjee had argued that the entry of international super-markets will put thousands of corner shops and farmers out of business.