New Delhi, April 27: India’s government faces a trial of strength on Tuesday with some opposition demanding a parliamentary vote to force it to resign over a hike in fuel and fertilizer prices, causing unease in the Congress-led coalition.
Prime Minister Manmohan Singh is expected to survive, but his margin of victory will signal the government’s ability to pass major bills from opening up its $150 billion nuclear sector to allowing greater foreign stakes in the pension and insurance sectors.
The Congress party appears at its weakest since it was re-elected last year, after two allies withdrew support over a bill reserving legislative seats for women.
The momentum appeared on the side of Congress. Most wavering allies have pledged support and some smaller parties could abstain from voting, including the BSP, a lower caste party led by Mayawati, a former “untouchable” teacher turned state leader.
“The government is confident of sailing through. We have the numbers,” Veerappa Moily, the federal law minister, told Reuters.
“Today we are concerned about passing the finance bill and the budget grants. Once it is over, we will concentrate on other bills.”
Financial markets have taken the row in their stride, but a wafer-thin victory may delay crucial laws, some experts say. The vote — which still needs a green light from the parliamentary speaker — is due late Tuesday.
Plans to open up the pension and insurance sectors and to allow foreign universities to set up local campuses were all put on the back-burner due to opposition pressure, a sign of difficulties in carrying out reforms in India.
It was also forced to put on hold a bill on the liability of private nuclear reactor operators in the case of accidents, delaying the entry of U.S. firms like General Electric and Westinghouse Electric in the sector.
The possible vote on Tuesday was sparked mainly by the government’s decision in February to raise petrol prices by 6 percent and diesel by 7.75 percent, angering opposition parties.
They are also against a decision to free prices of most fertilizers, a move the government took in February to help reduce its subsidy bill.
At least 13 regional parties led by the government’s former Communist allies will demand the special vote once the government seeks approval on the budget from various ministries on Tuesday.
“Our intention is not to pull down the government when we call the special vote, but convey the unhappiness of the people to the government,” Nilotpal Basu, a communist leader, told Reuters.
A dawn-to-dusk strike called by the 13 regional parties against inflation also paralyzed life in some parts of the country.
Two buses were set on fire in Lucknow, capital of Uttar Pradesh state, while flights and train services were disrupted in Kolkata, the capital of communist-ruled West Bengal, officials said.
–Agencies