Cong nod for UPA reforms

The Congress party on Tuesday gave its political backing to the Manmohan Singh government’s reform agenda, putting an end to speculation that some sections in the party were opposed to foreign direct investment (FDI) in multi-brand retail.

The Congress Working Committee (CWC), which met on Tuesday in the backdrop of the pullout of the Trinamool Congress (TMC) from the United Progressive Alliance (UPA), fully endorsed the reform agenda. “There is no threat to the government, it is stable,” Congress president Sonia Gandhi told party leaders at the highest decision making body of the party.

Gandhi spoke of the necessity of economic reforms at this critical juncture. She slammed the Bharatiya Janata Party (BJP) for playing negative politics, instead of acting as a responsible opposition.

Gandhi said the pullout of the TMC was unfortunate, but assured the members that the government was stable as the Samajwadi Party and the Bahujan Samaj Party is backing the UPA from outside.

Finance minister P Chidambaram explained to CWC members the circumstances that led the government to undertake steps such as a rise in diesel prices, cap on subsidised LPG cylinders and FDI in multi-brand retail.

The prime minister who spoke towards the end, bolstered Chidambaram’s arguments and told the CWC that UPA flagship programmes could not be implemented effectively till the economy was sound.

It was a concerted effort to have the party and the government on the same page. The consistent grouse among partymen and even Congress spokespersons was that the government worked in isolation and took unpopular decisions and it was always the party that had left to do the firefighting.

Leaders at the CWC meet, where Congress general secretary Rahul Gandhi was present, urged partymen to spread the government’s point of view among the people so as to manage the political fallout of these reforms.

A senior CWC member told Business Standard: “Whatever was said by Chidambaram on Tuesday on the depreciation of the rupee against the dollar, which has led to further escalation in the under-recoveries of the public sector oil marketing companies, and the steps that had to be taken to arrest the fall of the rupee, were points that had been stated before by the prime minister in his national address. But it was vital that the party’s decision-making body be officially apprised of it so that a message is sent out.”

Another CWC member said: “Senior leaders including top Cabinet ministers will be fanning out across the country to remove misconceptions among the masses.” “Opposition to FDI is not among farmers but by the political class. It is they who want to gain political benefit out of opposing this,” said a Cabinet minister.

Delhi chief minister Sheila Dikshit, although she is not a CWC member, was specially invited to the meeting. Sources said this was in preparation for a massive rally by the Congress to be held in Delhi to support the reform measures and to counter the opposition stand that these measures are anti-people.

The prime minister who spoke towards the end, bolstered Chidamabaram’s arguments and told the CWC that UPA flagship programmes cannot be implemented effectively till the economy is sound.