Difficult to withdraw FDI decision, PM tells allies

With Parliament deadlock escalating, Prime Minister Manmohan Singh on Thursday told the allies that it will be difficult to withdraw the decision to allow foreign direct investment in retail and that they should vote with the government on the issue.

As Opposition remained united on the demand for an adjournment motion on the issue, Singh and United Progressive Alliance trouble-shooter Pranab Mukherjee are believed to have conveyed to the allies that the economic situation was very difficult and there are worries about the GDP growth rate.

It is a decision taken by the Cabinet in a difficult environment and it will be difficult to go back, they told the leaders, according to Union Minister and Trinamool Parliamentary Party chief Sudip Bandopadhyay, who said his party does not want the government to fall.

As Parliament remained paralysed for the eighth straight day, government and the Congress party expressed confidence that the ruling coalition has its numbers and dared the opposition to move a no-confidence motion.

However, a source among the allies said Mukherjee, who is also Leader of the Lok Sabha, told them that censure motion is not a no-confidence motion but its adoption would seriously dent the credibility of the government.

Leaders of the allied parties, Trinamool Congress and the Dravida Munnetra Kazhagam which account for 18 MPs each, and smaller parties Nationalist Congress Party, National Conference and Indian Union Muslim League attended the meeting in the wake of strong opposition from Trinamool and DMK to the government's decision to allow FDI in retail.

TMC and DMK, however, maintained their opposition to the policy of FDI in retail and sought its withdrawal. They also wanted a discussion in Parliament on the issue.

In an apparent softening of the DMK stand, party leader TR Baalu is believed to have told the Prime Minister that they would consult party chief M Karunanidhi and get back to him on the party stand if a vote is to be taken.

On Wednesday, significantly Karunanidhi, who had earlier made a strong statement opposing the FDI in retail, told reporters that the party would decide on how to vote on the adjournment motion when the issue comes up.

Bandopadhyay said allies give suggestions to bigger parties because it is not just a Congress government but a coalition.

A formula being talked about suggests that the allies will support the government in Parliament for stability but will make it clear that they will not implement it in their states.

There were also reports that Trinamool Congress could abstain from voting if an adjournment motion was taken up in Parliament but both DMK and Trinamool Congress leaders parried questions on that.

Both Baalu and Bandopadhyay said that these are hypothetical questions. Let the House meet and discuss and the question of voting comes later.

Parliamentary Affairs Minister Pawan Kumar Bansal expressed confidence that the government has the majority. "I am very confident. We are sure about that. When occasion comes, you will see that," he said, but declined to answer any questions on the issue.

At the AICC briefing, party spokesman Rashid Alvi dared the opposition to bring a no-confidence motion against the government if they feel it doesn't have the numbers.