I will talk to BJP to push stalled financial reforms: Chidambaram

Acutely aware of the thin majority the UPA has in the Lok Sabha and the narrow window before general elections...

Acutely aware of the thin majority the UPA has in the Lok Sabha and the narrow window before general elections, Finance Minister P Chidambaram said today he was willing to approach and talk to the BJP to ensure that the long-pending crucial financial sector legislation can be passed in Parliament.

8220;I intend to reach out to every section in Parliament, including the BJP, and seek its support on the economic agenda spelt out in my past Budgets,8221; he said, in an exclusive interview to The Indian Express, his first after the trust vote. Text, see page 20.

At least three bills on financial services reforms are stalled today: Banking Regulation Amendment Bill, Pension Fund Regulatory and Development Authority Bill and the SBI Amendment Bill.

On its part, the BJP had yesterday said it would consider supporting the government on economic reforms. 8220;If Prime Minister Manmohan Singh himself takes an initiative and contacts Opposition Leader L K Advani with specific proposals, the party will examine them,8221; Yashwant Sinha, BJP leader and former finance minister had said.

Saying that he 8220;welcomed8221; this statement, Chidambaram said two of the three Bills were favourably reported by the Parliamentary Standing Committee on Finance. The committee itself was chaired by a BJP member BC Khanduri and now by another BJP member Ananth Kumar. He, however, said, there are other parties too that are broadly supportive of reforms. 8220;We will reach out to all,8221; he added.

While the banking reforms Bill seeks to do away with the 10 per cent cap on voting rights and make it commensurate with shareholding, the Bill to amend the SBI Act will help the government pare its stake in the country8217;s largest bank to 51 per cent from 55 per cent.

Both these Bills, as well as the one on pension reforms, were opposed by the Left, but may find currency with the BJP. In fact, it was the previous NDA government that sought to reduce government stake in state-owned banks to 33 per cent.

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The finance minister also said despite 12 per cent inflation rate, a 13-year high, the economy would grow 8-8.5 per cent in the current fiscal. Admitting it was a difficult year, he said, the industry might moderate to a level, but expected agriculture and the services sectors to perform well. 8220;However, it will be a year when growth will be accompanied by inflation. The effort is to moderate inflation from now over the next six months,8221; he said.