What the ideologue Marxists failed to do during Nuclear Deal, unpredictable fire branded leader from West Bengal Mamata Banerjee has done exactly that. The corporate government is trapped as never before and not only the chariots of second generation

What the ideologue Marxists failed to do during Nuclear Deal, unpredictable fire branded leader from West Bengal Mamata Banerjee has done exactly that. The corporate government is trapped as never before and not only  the chariots of second generation reforms jammed in an unprecedented stand off , but the survival of the reformist anti people government depends on two undependable outsider allies Mualayam and Mayawati. DMK opting for participation in the opposition called national strike on 20th September has worsened the situation just after the parliamentary logjam washing out entire monsoon session. Finance minister P Chidambaram has recently said to continue reforms without parliamentary approval. It seems rather amusing that the government has to face the parliament to continue in the office, not to mention the reform agenda at all!

Palash Biswas

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What the ideologue Marxists failed to do during Nuclear Deal, unpredictable fire branded leader from West Bengal Mamata Banerjee has done exactly that. The corporate government is trapped as never before and not only  the chariots of second generation reforms jammed in an unprecedented stand off , but the survival of the reformist anti people government depends on two undependable outsider allies Mualayam and Mayawati. DMK opting for participation in the opposition called national strike on 20th September has worsened the situation just after the parliamentary logjam washing out entire monsoon session. Finance minister P Chidambaram has recently said to continue reforms without parliamentary approval. It seems rather amusing that the government has to face the parliament to continue in the office, not to mention the reform agenda at all!However, Banerjee added a caveat saying if the Centre rolls back the decision on FDI in multi-brand retail, raise the cap on supply of subsidised LPG to 12 cylinders and reduction of diesel hike from Rs.5 to Rs. 3 or Rs.4, then the party would reconsider the decision to withdraw support.She said the Central government was not not a one-party rule. "The government depends on the support of others. But in Bengal, we have a majority of our own and we are not not dependant on others," she said.

Meanwhile,DMK, a key ally of the ruling UPA, today announced its participation at the September 20 nation-wide bandh called by several non-UPA parties to protest Centre's decision on diesel price hike, allow FDI in multi-brand retail and limit subsidised cooking gas.

The biggest ally in Prime Minister Manmohan Singh's government pulled out of the ruling coalition on Tuesday, escalating a political firestorm over big-ticket reform measures launched last week to revive India's flagging economy.Mamata Banerjee, the chief minister of West Bengal, had demanded the government reverse its decision to raise diesel prices and open the supermarket sector to investment from foreign chains such as Wal-Mart Stores.In accordance to the reformist corporate lobby,her withdrawal and that of her 19 MPs in Lok Sabha is unlikely to destabilise the government in the short term as Singh's Congress party can count on other parties for support.

But it might embolden Banerjee and other parties to intensify ongoing protests against unpopular economic policies that the government sees as crucial to reining in a bloated fiscal deficit and improving investor sentiment.

Global Order managers are overjoyed that the wall street is still remain unoccupied and people`s resistance may not stop the monopolistic corporate aggression. It could be a turning point, that a leader who led people`s resistance almost for the same time span as ne liberal age struck Indian nation, has just upset the apple cart!Mamata Banerjee on Tuesday evening announced after 3-hr party meeting in Kolkata that her party decided to withdraw support from UPA government on the issue of diesel price hike, LPG cap and the FDI multi-brand retail decisions by the Central government.However, Ahead of the crucial meeting of Trinamool Congress (TMC) parliamentary party, prominent leader Saugata Roy on Tuesday indicated that party could pull out its ministers from the Union council of minister if its  rollback demands on FDI in retail, cap on LPG subsidy and diesel price hike were not met with.But the congress crisis manaager believed it was not to happen!It did happen!After her 72-hour deadline and an over three-hour long meeting in Kolkata with Trinamool Congress MPs and leaders, West Bengal Chief Minister Mamata Banerjee on Tuesday finally walked out of the Congress-led United Progressive Alliance Government.Mamata Banerjee took the decision to pull out of the UPA after meeting her party leaders, which was attended by all the MPs including the six ministers belonging to the Trinamool Congress in the Union Ministry.Addressing mediapersons after the meeting, the West Bengal Chief Minister accused the UPA of not giving the respect to the Trinamool Congress that it deserved.She even said that the latest steps taken by the UPA were attempts to divert the attention of the country from the coalgate controversy.

Banerjee ruled out supporting the government from outside saying her decision was "not half-hearted".

Widening the attack on Congress, she brought in issues like coal block allocation scam, blackmoney and fertiliser price rise.

The Ruling parties in the centre has been by passing the parliament and the democratic process  and had been running blind on the highway of capitalist development killing constitution and adopting genocide culture for last twenty years. Congress underestimated Mamata and just forgot that she led the resistance against pro capitalist Marxists in  Bengal and finally ended 35 years of Left rule. The King Singh painted as superman by the international and national media failed badly to manage the lady. Now the equation is that he has to go back to reverse gear or face the consequences!Mind you, Mamata has opted for withdrawal of support and promised to vote against the government. If she succeeds to stall the genocide machine,it would be historic!Chief Minister of West Bengal state Mamata Banerjee addressed a large rally in Kolkata Saturday, as opposition parties protested against the government's decision to open the country's huge retail market to foreign retailers.

In a brief statement, DMK president M Karunanidhi asked his party members to extend "full co-operation" for conducting the protest in a "peaceful" and "successful manner".

Karunanidhi, who has already demanded rollback of the diesel price hike, also asked various wings of his party to participate in the bandh.

"People in the state are already reeling under the increase in transport, milk, electricity charges and price rise. The Centre, burdening the common man further, has announced increase in the diesel price, limiting subsidised cooking gas and allowing FDI in multi-brand retail. To protest these decisions, a nation-wide protest has been announced on September 20," he said.

Samajwadi Party, which is supporting the government, along with a number of other non-UPA parties including BJP, will hold coordinated agitation programmes on September 20 across the country to protest against these decisions of the Manmohan Singh government.

Mamata Banerjee, the chief minister of West Bengal state and the biggest ally in Prime Minister Manmohan Singh's government pulled out of the ruling coalition on Tuesday, escalating a political firestorm over big-ticket reform measures launched last week to revive country's flagging economy.

Mamata also accused the Congress of unilateralism in decision making and decided to walk out of UPA II alliance.

"We are withdrawing our support. Our ministers will go to Delhi, meet the Prime Minister and tender their resignations at 3 PM," TMC chief Mamata Banerjee announced after a meeting of party MPs, top leaders and office bearers.
Mamata had demanded the government reverse its decision to raise diesel prices and open the country's supermarket sector to investment from foreign chains such as Wal-Mart Stores.

Mamata had earlier issued a 72-hour ultimatum to the UPA government to immediately roll back the hike announced in the diesel prices, LPG cap and FDI in retail and threatened to take a tough action if the centre refuses to act swiftly on her party's demands.

Last year, Ms. Banerjee forced the government to suspend an earlier decision to allow foreign supermarkets to open for the first time in India. Her party has opposed the move, arguing it will drive local Indian retailers out of business.

But the government last week revived the push to open the sector, saying it was crucial to bolster sagging economic growth.

Since then, parties from across the political spectrum, including Ms. Banerjee's, have protested the measure.

Ms. Banerjee also opposed a government move last week to raise diesel prices.

Opponents of the latest overhauls, among the most significant since India opened its economy in 1991, have threatened mass protests on Thursday.

The meeting, attended by all Trinamool members of the Lok Sabha and the Rajya Sabha along with senior party leaders and ministers of the state cabinet was held at the historic Town Hall auditorium.

The government said the implementation of FDI in multi brand retail remained a prerogative of the states.

Mamata has already described the reform package as "anti-people", saying a hike in diesel prices will spur inflation and that the opening of the retail sector to foreign multi-nationals will hurt millions of small traders.

Mamata had said she does not wish to topple the central government, while Finance Minister P. Chidamabram on Monday expressed confidence that the reforms would be pushed through.

Opposition parties ranging from Left to the Right will hold a nation-wide strike on Thursday to protest against reforms in retail on the grounds that super-chains like Wal-Mart and Tesco will obliterate thousands of kirana stores and the livelihood of many small farmers.

Mamata has been against the reforms from the beginning as it is known that  weeks before the "big bang" decisions on economic reforms, Prime Minister Manmohan Singh had made clear to Mamata Banerjee about the intention to allow FDI in retail and called her to inform just before the Friday's cabinet meeting but she did not receive the call.

Talking about the decision of her party, Banerjee said that her ministers in the Union government would resign on Friday.

"The Trinamool Congress stands for principles. We will organise country-wide agitations," said Banerjee, adding, "this government will last only three to six months."

The West Bengal Chief Minister said that the decision by the Centre was "unilateral", and even Parliament was not informed about it.

"I told Sonia Gandhi that this decision was wrong and asked for roll back but did not happen," said Banerjee. She, however, added that her "personal relations" with the UPA chairperson would continue.

The West Bengal Chief Minister even left a room for negotiation saying she might reconsider her decision if the government went for a roll back before Friday.

So does Mamata Banerjee gain from pulling out the UPA government? And why did the government look so tough in the face of the West Bengal chief minister's demands this time? Look at it in simple numbers. The UPA has 276 MPs in Parliament and with outside support of the Samajwadi Party, the Bahujan Samaj Party, JD(S) and the Rashtriya Janata Dal, the number goes up to 326. This is very comfortably above the half-way mark of 272. (See break-up below)

Without Ms Banerjee it loses 19 of her MPs. This still leaves the government with a comfortable 35 more than it needs to survive. This time round, she has shown some real bite and not just bark. This will help her silence the already wounded Left in the state, which is politically very important for her.

With local elections coming up, her pro-poor posturing could also be politically helpful. But she has lost some clout in New Delhi, where had the important rail ministry. The ministry has proved politically useful to a succession of parties and governments, especially during election campaigns.

UPA NUMBERS IN LOK SABHA

UPA + Allies (Mamata, Mulayam, Karunanidhi) = 329 seats

UPA + Allies - Mamata = 310 seats

UPA + Allies - Mamata and Mulayam = 288 seats

Majority Mark: 272

Total seats: 543

A popular backlash against retail liberalisation forced the government into an embarrassing climbdown on the reform last year. Singh revived the measure on Friday, although opponents of the policy have vowed to reverse it once again.Mamata Banerjee, chief minister of West Bengal state and head of the Trinamool Congress, said Tuesday the party had decided to leave the government over its opposition to the overhauls.

The administration of Prime Minister Manmohan Singh relies on Trinamool for its majority in Parliament.

To govern, the ruling Congress party, which heads the United Progressive Alliance government, will have to find other coalition partners to cobble together a majority.

But the Congress party appears confident of surviving the opposition against the reforms and has held firm against calls for the measures to be rolled back.

Several party and government officials have told Reuters that Congress leader Sonia Gandhi had assessed the risks of losing coalition allies over the measures and concluded the government was safe.

Banerjee came to power in West Bengal in 2011, ending more than three decades of Communist rule in the state. Colloquially known as "Didi", or "elder sister", Banerjee's supporters hail her as a champion of India's poor and dispossessed.

But her politics are a thorn in the side of the government. Her protests had been instrumental in blocking a slew of economic measures, from retail reform to allowing foreign direct investment into India's aviation and insurance sectors.

"We waited enough time," Banerjee said. "They have to withdraw FDI in retail if they want us to stay, they have reverse their decisions on LPG subsidy and diesel hike."

Reacting to the decision of the TMC chief, the Congress made a brief statement saying Banerjee continued to be a valuable ally.

Congress spokesperson Janardhan Dwivedi said, "Despite what Mamata has said today, till something finally happens, we will continue to treat her as our ally...she is still out friend."

"Whatever issues Mamata has raised, we will discuss those with the government," Dwivedi said.
The Samajwadi Party, meanwhile, called her withdrawal of support "a very serious issue".

Samajwadi Party leader Ramgopal Yadav said, "The withdrawal by Mamata is a very serious issue. Congress should have given a chance to Mamata...almost all parties are against FDI, diesel price hike and LPG issue."

The Bharatiya Janata Party also attacked the UPA government over the issue terming it as a result of the "Congress' arrogance of power".

"This is the Congress way of dealing with their alliance. They are not consulted in a Congress government," said BJP spokesperson Prakash Javadekar.

Senior BJP leader Ravi Shankar Prasad hit out at the government saying the "beginning of the downfall of the UPA government has started".

The BJP leader said that the decision by the Trinamool Congress chief had exposed the arrogance of the Congress party, adding that the "countdown has started".

Meanwhile, JD(U) leader and Bihar Chief Minister Nitish Kumar made a brief statement saying, "Whatever has happened is in the best interest of the country."

With the Trinamool Congress withdrawing support to the UPA, the strength of the ruling coalition in the Lok Sabha has come down to 254 from 273.

UPA - TMC(19) = 254

Now, if the Bahujan Samaj Party (BSP) and the Rashtriya Janata Dal (RJD) continue to support the government, the UPA will have a strength of 279 in the Lok Sabha.

UPA(273) - TMC(19) + BSP(21) + RJD(4) = 279

The UPA could also look towards the Samajwadi Party, which has 22 MPs, for support. If the Samajwadi Party comes on board, then the UPA is assured of a very comfortable majority.

UPA(273) - TMC(19) + BSP(21) + RJD(4) + Samajwadi Party (22) = 301

Trinamool Congress leader Mukul Roy is of Cabinet rank and holds the Railways portfolio while other five MPs from the party are ministers of state. They are Minister of Urban Development Saugata Roy, Minister of Health and Family Welfare Sudip Bandyopadhyay, Minister of Information and Broadcasting Choudhury Mohan Jatua, Minister of Tourism Sultan Ahmed and Minister of Rural Development Sisir Kumar Adhikari.

The Prime Minister had even yesterday wanted to talk to Banerjee and a call was made to her by his office which has not been returned yet, sources said.

Separately, through back-channels, some Congress leaders have left messages for Banerjee to talk to Singh which also have not been entertained, the sources said.

Rejecting Banerjee's contention that she was kept in the dark over the decisions on FDI, sources said the Prime Minister had revealed his mind at the UPA Coordination Committee meeting on August 22 which was attended by the Trinamool Congress leader and West Bengal Chief Minister.

At the start of the meeting, Singh had listed 17 issues, including FDI in retail and aviation, saying decisions in this regard needed to be taken along with hike in diesel price as the economy was in a bad shape, the sources said.

Banerjee stated that she did not want to talk about these issues at that meeting and would discuss with the Prime Minister privately, the sources said.

Subsequently, Finance Minister P Chidambaram had explained that the government needed to go ahead with reforms and cut fiscal deficit to restore confidence of investors, they said.

But she insisted she would talk to the Prime Minister separately about it.

Later, just before the meeting of cabinet last Friday when the FDI decisions were taken, Singh had called her to inform about the impending decisions as Trinamool representative and Railway Minister Mukul Roy was not going to attend, the sources said.

However, she did not receive the Prime Minister's call.

Congress today reached out to Trinamool Congress chief Mamata Banerjee describing her as a "valued colleague" who had grown up in the "nursery of Congress" and would not do anything to create instability in the country.

"She is a valued colleague. She made a valuable contribution to the alliance and she has a long history of relationships and friendships with Congress party because she grew up in the nursery of Congress and she has been one of the more admired leaders in Congress party before she found her own party, Trinamool Congress," Union law minister Salman Khurshid said.

He was responding to queries about the course of action the Trinamool chief may take on the issues of diesel price hike and the cabinet decision to allow FDI in multi brand retail. Asked how Congress is trying to reach out to Banerjee, he said "I can't put my finger on and say that this is the particular method we would have used or we are using and who in particular is attempting or trying to persuade her".

The Law minister said though he did not want to forecast anything, he believed Banerjee would take no step that would create instability.

"I am sure what she has been saying repeatedly that she does not want to contribute to any kind of instability, I am sure she actually means it and she will find a way of expressing it," he said. Khurshid also defended the government's decision to allow more FDI saying changes had to be made as per circumstances.

"Political parties all over the world transform themselves, change themselves to address the need of the circumstances around them. Why should Indian political parties not do the same," he said.