Sorry, Comrade, FDI in banking up to 74%

Finance Minister P. Chidambaram today met CPI general secretary A.B. Bardhan and explained to him that the government had made up its mind o...

Finance Minister P. Chidambaram today met CPI general secretary A.B. Bardhan and explained to him that the government had made up its mind on raising the FDI ceiling in banking to 74 per cent. The finance minister told Bardhan that American banks were waiting to move in.

According to Left sources, there was a cordial atmosphere at the meeting and there was hardly the tension or belligerence that UPA-Left meetings have witnessed in recent times. Bardhan, the sources said, told Chidambaram in a lighter vein that he should ‘‘slow down’’ with FDI for the sake of the Left. Chidambaram apparently explained to him that banking reforms were due for a long time and that it would pave the way for big names to become involved with the Indian economy.

Bardhan’s statement at a party conference in Nalgonda in Andhra Pradesh had prompted the Prime Minister to call him up a few days ago and assuage his feelings. Bardhan had warned of ‘‘bad days ahead’’ for the UPA government. Chidambaram told Bardhan this afternoon that the Prime Minister had even called him up and asked him to find out what had made Bardhan angry.

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With both Prime Minister and the finance minister taking him into confidence and explaining to him the government’s compulsions, it was difficult for the CPI general secretary to go into a combative mode this afternoon.

He did tell Chidambaram that enhanced FDI in banking would mean ‘‘more bad days ahead’’ but that was more in a light-hearted manner.

Bardhan had to explain that for the Left in general and for his party in particular the threat ‘bad days ahead’ did not imply ‘‘severing of ties’’ or ‘‘delinking of the Left from the alliance with the UPA’’.

Chidambaram had, of course, fully prepared himself for the meeting. He requested Bardhan to come up with his own wishlist for this year’s Budget. The finance minister had met the Left leaders in a bunch earlier at North Block. But he allowed the CPI leader to voice his own thoughts on the Budget.

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Bardhan wanted the amount paid monthly under the National Old Age Pension Scheme to be hiked immediately. He wanted it to go up from a ‘‘ridiculous Rs 75 per month’’ to ‘‘a less embarrassing Rs 200’’. Chidambaram apparently agreed that the sum of Rs 75 made little sense but he did not promise a hefty 300-per cent increase.

Similarly, Chidambaram patiently heard out Bardhan’s demands for the small-scale sector. Left sources said that Bardhan pleaded for the small pharmaceutical manufacturers who produce both generic drugs and those who retail their own products. He wanted taxes on their products not to be based on the MRP.

The veteran CPI leader also spoke out in favour of small-scale manufactuers in the imitation jewellery sector. He said that last year the excise levied on them had gone up from eight to 16 per cent. Chidambaram said that he would definitely look into these requests.