FDI issue brings arch rivals together

The National Democratic Alliance (NDA) government's decision on foreign direct investment (FDI) in sectors such as defence, railways and insurance on Thursday brought arch rivals Trinamool Congress (TMC) and the Left parties together. The Union Cabinet on Wednesday cleared 100 per cent FDI in the railways and 49 per cent in the defence.

The parties accused the government of acting in haste, keeping in mind Prime Minister Narendra Modi's proposed visit to the US. They alleged the government was hell-bent on "selling" the country's interests.

Rejecting the charges, Finance Minister Arun Jaitley said FDI in railways had been mentioned in the Rail Budget, while FDI in defence was mentioned in the Union Budget and both the Budgets had been extensively discussed.

The Rajya Sabha was disrupted several times, with TMC's Derek O' Brien and CPI(M)'s Sitaram Yechury demanding a discussion on the matter.

O'Brien said, "This is not the way to go about. FDI is not the panacea of all problems. FDI is not foreign direct investment, it's foreign direct interference, it's foreign direct intrusion."

O'Brien was joined by Yechury and P Rajeeve of the CPI(M). "We strongly protest FDI in railways, insurance and defence sectors," Rajeeve said. CPI's D Raja was on his feet hitting out at the government.

In this context, Jaitley said since both the issues had been discussed in the Budget, the Cabinet had only taken a formal decision.

The Congress, All-India Anna Dravida Munnetra Kazhagam, TMC and Left parties demanded the insurance Bill be sent to a select committee.

O'Brien took on the government over the insurance amendment Bill, saying a majority of members in the Upper House want the Bill to be sent to a select committee. "The previous government was playing a relay on FDI on 4th gear, but this government is on 5th gear and are in more hurry than the last one."

TMC chief and West Bengal Chief Minister Mamata Banerjee's post on Facebook read: "The Union Cabinet has approved up to 100 per cent FDI in railways and up to 49 per cent in the defence sector. Increasing FDI cap from 26 per cent up to 49 in defence sector will put a big question mark on safety and security of the nation. I do not know what will be the fate and future of this country."