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India Today
    CURRENT ISSUE July 04, 2005
 
   NATION: UPA-LEFT
 
All Fury, No Fire

The Left sees red as the Centre hikes petroleum prices. But apart from the public posturing there's little the communists can do.
 

Nothing speaks more eloquently of the duplicity of the Indian Reds than the devious drama that was played out last weekend, shortly before the Government hiked the prices of petrol and diesel. If public posturing is anything to go by, the Left is horrified because the "hike will have a cascading effect and heap a huge burden on the common man". Therefore, they scheduled nationwide demonstrations on June 28 to force the Government to roll back the increase. "We call upon people all over the country to register their strong protest by coming out into the streets and demonstrating their opposition," a joint statement by the four left parties said.

  PICTURE SPEAK
SELF SERVICE: The Left got the Government to postpone the price hike

Consider what is said to have happened behind closed doors in the run-up to the announcement of the hikes and it will be clear as daylight that the threat was meant only for public consumption. For at least four months, the media had routinely talked about "an imminent fuel price hike". Nothing happened. Then last fortnight, with international oil prices touching $59 (Rs 2,564) per barrel, time was running out for the Government. Any further dithering on the issue could only be at the cost of bleeding the oil companies. Finally, the decision to increase the prices was taken. Once again, there was buzz in the media about the impending hike.

If there was still some delay before the Government finally announced the hikes, it had a lot to do with political expediency-not the UPA's but of the self-serving Left. The Marxists were in poll mode in Kolkata, where civic elections were held on June 20, and the CPI(M) was up against Mamata Banerjee's Trinamool Congress. The party's brass had sent feelers to the Government to stall the decision on the hike till the civic polls were over and done with. There was much to-ing and fro-ing between AKG Bhavan, the CPI(M) headquarters, and Race Course Road. Even H.S. Surjeet, 89 and frail, found the strength to drive across to 10 Janpath for a brief meeting with UPA Chairperson Sonia Gandhi where the CPI(M) demanded a postponement of the hike. A meeting of the Union Cabinet, convened specifically to discuss the price hike was put off, the official reason touted being that many of the ministers were out of town. However, there was never any doubt that a decision on the hike had been taken, but was being put off through a tacit understanding with the Left. The final announcement of a Rs 2.50 rise in the price of petrol and Rs 2 for diesel came only after enough votes had been stuffed in favour of the Reds in Kolkata.

LEFT HAND DRIVE

GOVERNMENT: Oil firms seek substantial increase in prices to offset international crude oil price rise.
LEFT: Opposes price hike and instead asks the Government to cut duties to ease burden.
FINALLY: After months of dithering, prices of petrol and diesel are raised, but kerosene and LPG spared.


GOVERNMENT: Raised to 49% for domestic private carriers. Keen to allow foreign investment in sector.
LEFT: Muted opposition to the proposal; has serious reservations on privatisation of airports.
FINALLY: Government opted for the middle route to keep its crucial coalition allies as well as foreign investors happy.


GOVERNMENT: Goes ahead with decision to raise level from existing ceiling of 49% to 74%.
LEFT: Opposes, saying telecom is a sensitive sector having serious security implications.
FINALLY: Government stipulates conditions primarily to address the concerns of security agencies and left parties.


GOVERNMENT: Approves plan to sell off 10 per cent stake in the PSU to raise Rs 2,500 crore.
LEFT: Opposed to both privatisation and disinvestment, threatens nationwide protests.
FINALLY: Government is determined to go ahead with sale. The Left's only option is to keep making all the noise.


GOVERNMENT: approves hike in FDI from 49% to 74% in private banks by foreign banks.
LEFT: Opposes, fearing that Indian banks will be swamped with takeovers by foreign banks.
FINALLY: The bill was introduced during the budget session of Parliament. It will be a while before the bill is ratified since it calls for amendment to two existing Acts.


GOVERNMENT: Employees Provident Fund Board recommends 9.5% interest rate for year 2004-5.
LEFT: Seeks a 12% interest on deposits by more than four million subscribers to the EPF.
FINALLY: Though Left had demanded a higher interest rate, leaders appear satisfied. Say new rate is in conformity with the promise held out by Manmohan Singh.

Yet, the left parties went on the offensive after the announcement. With its 61 MPs crucial to the survival of the UPA Government, the comrades lost no time in flexing their muscles. The demonstrations planned on June 28, they feel, will be a barometer of public outrage over the fuel price hike. So will they pull the plug? "We aren't threatening. All we are saying is that the Government should have given some serious thought to the suggestions we gave to avoid the fuel price hikes," says CPI National Secretary D. Raja, who, however, resorts to invectives when reminded about the Government's determination to go ahead with disinvesting 10 per cent of the heavy engineering PSU BHEL.

Sitaram Yechury, CPI(M) Politburo member, once warned the UPA the "Left parties can not only bark but also bite". On the evidence of the past year, there is little to suggest the comrades will go beyond baring their fangs. Once the country's main opposition party, the communists believed they were just a while away from capturing power at Delhi when the Congress crumbled. As it turned out, thanks to its historic exercise in co-option, it was the Congress that checkmated the Left by appropriating its agenda of socialist economic policies. The emergence of the Indian Right saw the BJP eventually capturing power at the Centre. These phenomenal changes drove the leftist ideology to the fringes of the Indian polity.

After being in the wilderness for nearly a decade, the Left is back at the centre space of the Indian political and economic stage. Its agenda too is back, courtesy the alliance at the Centre. Although bereft of its original steam the unmistakable leftist imprint has once again begun to show itself in most of its favoured haunts: economics, education and culture. It is particularly visible in the detoxification drives in the HRD Ministry and the packing of various policy-making bodies with key Left nominees.

The leftists are clearly revelling in the limelight. In May 2004, when they announced support for the Congress-led coalition, they had stated they would monitor the Government for a year. The honeymoon is now likely to last, at best, for another year as polls in Kerala and West Bengal, its strongholds, are due in 2006. Cadres in these states already find it hard to come to terms with the contradictions of opposing the Congress even as it shares power with it at the Centre.

As the prop that keeps the minority Government in office, it is the nearest the Left has come to exercising power at the Centre. True, as an "outside supporter" in the two short-lived United Front experiments, the leftists had gained considerable expertise at backseat driving. This now comes handy as the Left intimidates the Government on disinvestment and privatisation, holds out threats over petroleum price hikes, harangues it over plans to privatise airports and chides it for its attempts to sell shares of BHEL.

The Reds are clearly enjoying the role of backseat drivers. It's a role that suits them well, as in the event of an accident, the responsibility would not be theirs.

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JULY 04, 2005
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