With friends like these8230;

The UPA Government8217;s move to increase FDI in telecom, banking sector and aviation created fissures with the Left.

8226;August 2004 The UPA Government8217;s move to increase FDI in telecom, banking sector and aviation created fissures with the Left. The Government raised FDI to 49 for domestic private carriers and wanted foreign investment in the sector. But the Left had muted opposition to the proposal and serious reservations on privatisation of airports. Finally, the Government opted for the middle route to keep its crucial coalition allies as well as foreign investors happy. In the telecom sector, the Government raised the level from the existing ceiling of 49 to 74 while the Left opposed the move saying that telecom is a sensitive sector having serious security implications. The Government then stipulated conditions to address the concerns of security agencies and Left parties.

In the same month, the Employees Provident Fund Board recommended 9.5 interest rate for the year 2004-05. Though Left had demanded a higher interest rate, the Government decided to keep the interest rate at 8.5 .

8226;March 2005 It8217;s a rare occasion that a party supporting the Government stages a walkout in Parliament to express its 8216;opposition8217; to a Bill. For the first time since the 14th Lok Sabha was constituted, members of Left parties walked out of the House in protest against the introduction of the Pension Fund Regulatory and Development Authority Bill, 2005, with the CPI8217;s Gurudas Dasgupta stating that 8220;we will vote against it8221;.

8226;June 2005 The UPA and Left failed to find a meeting ground on the issue of disinvestment in PSUs, especially BHEL. The Left suspended its participation in coordination meetings with the UPA. The Government was finally forced to shelve its decision to disinvest 10 per cent stake in BHEL.

The issue of hike in petrol prices has been a bone of contention since 2005. The Government raised oil prices several times in 2005, saying oil firms were seeking substantial increase in prices to offset international crude oil price rise. But the Left opposed and instead asked the Government to cut duties to ease burden. Finally, after months of dithering, prices of petrol and diesel were raised, but kerosene and LPG spared.

8226;July 2005 The most contentious of all issues was the Indo-US nuclear deal, which the Left opposed since the very beginning. The PM and his team of negotiators were still in Washington D C in July 2005 when CPIM leaders expressed their opposition to the deal. In an interview on August 13, 2007, PM Manmohan Singh dared the Left to withdraw support over the deal. The Government said that the deal in no way compromised India8217;s position and would in fact end India8217;s nuclear isolation. The two sides stuck to their positions for nearly a year before finally parting ways over it on July 8, 2008.

8226;July 2006 The year 2006 brought its share of stand-offs between the partners, with RTI becoming a major point of discord between the Government and Left. The Government approved changes in the Right to Information Act, 2005, to exclude notings on files by officials from the ambit of law, but the Left didn8217;t want the Act diluted.

Compiled by Rupinder Kaur