War over FDI in retail in Parliament

For Parliament, its day at work ended by noon. Both houses were adjourned till tomorrow - a consequence of the stand-off between the opposition and the government over the latter's decision to increase Foreign Direct Investment or FDI in the retail sector.

The opposition wants to discuss the government's decision under an adjournment motion - which would end with a vote. The government has rejected this - it wants a debate, but no vote.

Sharad Yadav of the Janata Dal says he will ensure Parliament does not function till the government withdraws its decision to allow 51% FDI in the multi-brand retail sector, a move that would allow giants like Walmart and Tesco to set up shop in India.

The list of parties and states attacking the move to increase FDI in retail is embarrassing for the government - some of its most important allies like Mamata Banerjee have expressed their dissent; so has the Congress party's branch in Kerala. And today, DMK chief M Karunanidhi, also a senior member of the UPA with 16 Lok Sabha MPs, asked the government to reverse its decision.

An adjournment motion allows a member of the House to ask that regular business be suspended to discuss an urgent matter of public interest.  It includes a debate and ends with a vote that tests the government's strength. The opposition's insistence on a vote is seen as a pressure tactic - what it really wants is for the government to put its decisions on retail on hold till the matter is extensively debated in Parliament. 

In the Rajya Sabha, Jayalalithaa's party, the AIADMK, moved a notice for an adjournment motion. Senior BJP leader Murli Manohar Joshi had planned a similar course of action for the Lok Sabha. The BJP's Arun Jaitley told an hour before Parliament opened that, "FDI will hurt Indian economy...The sense in the country is against FDI...Government's decision on FDI will have a political fallout."

And Gujarat Chief Minister Narendra Modi confirmed his presence on a long list of chief ministers who are fighting the government over FDI in the multi-brand sector on the grounds that it will wipe out lakhs of small mom-and-pop stores. "My stand is the same as that of my party BJP & which is in the interest of the nation," Mr Modi tweeted this morning.

Yesterday, Leader of Opposition in the Lok Sabha, Sushma Swaraj had tweeted, "Parliament is in session and Government announced a decision of such far reaching consequences outside Parliament. It is a contempt of the House."

Unlike last week, when the UPA government managed to avoid an adjournment motion over the issue of black money as demanded by the BJP, this time it wouldn't be smooth sailing. Sources in the BJP have told that since the government did not admit the adjournment motion on black money on technical grounds, there is no reason why they can't bring one on FDI. Sources also say that if the government rejects the current motion arguing that the one on black money had already been proposed, the BJP is also considering a no-confidence motion.

The government has real cause for concern given the fact that the BJP has found backers over the FDI issue in AIADMK chief J Jayalalithaa, Trinamool Congress chief Mamata Banerjee and BSP chief Mayawati - the three women chief ministers of Tamil Nadu, West Bengal and Uttar Pradesh.

Mamata Banerjee is a UPA ally and has partymen as important ministers at the Centre. But she does not support FDI in the retail sector. "Some people can support 51 per cent FDI in retail but I do not support it. You see, America is America, Bangladesh is Bangladesh, Pakistan is Pakistan and India is India. I have to take into account how much capacity I have, how much is my ability. There are so many shops here. If these shops close what would the shop owners eat?" the Trinamool Congress chief said.

Nearer home in poll-bound Uttar Pradesh, Mayawati, at a Dalit rally on Sunday, used the FDI issue to target Congress General Secretary Rahul Gandhi. "To please the yuvraj, the FDI in retail has been allowed to benefit his foreign friends," she had said.

The war cry from the three women Chief Ministers indicates that the implementation of FDI in states will be difficult. Even in Congress-ruled Kerala, the state party chief Ramesh Chennithala has written to the PM opposing the move.

Opposition, allies, reluctance even at home. But the UPA government is not blinking. It shrugs off the Opposition's charge that it was not consulted.

"Privately, many members of different political parties including the BJP have been talking to us. And they have all been saying privately please do it. Why are you waiting? It doesn't require Parliament sanction. Why don't you do it? And now they stand up and do this," Law minister Salman Khursheed said.