FDI in Retail Policy Faces Parliamentary Hurdles
The UPA government is preparing to present its new FDI in retail policy to the Lok Sabha for approval. However, the government is apprehensive about securing the necessary support in the Rajya Sabha, the upper house of Parliament. While confident of approval in the lower house, the Congress-led UPA government faces considerable challenges in the Rajya Sabha.
Mixed Reactions and Opposition Concerns
The policy, designed to allow increased Foreign Direct Investment (FDI) in retail, is projected to stimulate the real estate sector. Nonetheless, the decision has evoked mixed reactions nationwide. Strong opposition has emerged from parties like the BSP in West Bengal and the AIADMK in Tamil Nadu.
Discussions between the UPA government and opposition parties have failed to yield a consensus. Opposition parties are demanding a vote on the FDI policy in both houses of Parliament. Parliamentary Affairs Minister Kamal Nath proposed a vote solely in the lower house, confident in the UPA's majority there. However, this proposal was rejected by opposition leaders Sushma Swaraj and Arun Jaitley.
Opposition Gains Momentum
BJP leaders have garnered support from other parties, including the Left, AIADMK, BJD, AGP, and TDP. This broadened opposition front has strengthened their insistence on votes in both parliamentary houses, placing the ruling alliance in a difficult position. Some argue that only the Lok Sabha's decision is crucial, suggesting that the bill's passage in the lower house is sufficient, even if it fails in the upper house. However, such a scenario could raise questions about the Rajya Sabha's significance.
Hopes and Uncertainties
Rajeev Shukla, Minister of State for Parliamentary Affairs, expressed optimism that the government would be open to discussions. He emphasized the role of Lok Sabha Speaker Meira Kumar, who is expected to approve the demand for a vote under Rule 184. The vote is likely to occur first in the Lok Sabha, potentially giving the UPA government a week to present the FDI policy for a Rajya Sabha vote. The ruling alliance faces the challenge of persuading the BSP and SP to support the policy in the upper house.
Challenges for the Ruling Party
However, recent developments appear unfavorable for the ruling UPA. CPM leader Sitaram Yechury echoed the demand for a vote on the FDI in retail policy. "Mrs. Swaraj said that there is no chance for fear. The government will not fall by this. She continued that the government should abide by the opinion of the majority."
The Samajwadi Party's opposition poses a further hurdle, given their nine members in the Rajya Sabha. Securing the support of the BSP, with its 15 members, is also crucial for the UPA. Both parties oppose the FDI policy. To achieve a majority in the 244-member Rajya Sabha, the UPA requires 123 votes. If the SP and BSP abstain, the UPA would need 110 votes. While BSP leader Mayawati's stance remains undisclosed, indications suggest she strongly opposes the government's decision.