Prime Minister Manmohan Singh’s government on Thursday seemed closer to securing parliamentary assent for its decision to allow foreign supermarkets to set up shop in the country, ahead of a crucial vote in the Upper House on Friday. The ruling UPA has mustered the backing of Mayawati’s Bahujan Samaj Party (BSP), which said it would vote in favour of the decision, and the tacit support of Mulayam Singh Yadav’s Samajwadi Party (SP), which is set to abstain from voting.
The government will, however, need support from at least seven of the 10 independent members in the House to scrape through.
In the 244-member Rajya Sabha, the effective strength falls to 234 thanks to the the abstention of the SP, which has nine members, and Sachin Tendulkar, in Kolkata playing the Test match against England, is unlikely to vote. With the 15-member BSP on its side, the tally of the UPA with 95 members would reach 110. To cross the halfway mark, it needs the support of eight more votes from independents. Indeed, a close call.
If the government loses the vote in the Rajya Sabha, it would find it difficult to implement the decision to allow foreign direct investment in retail. Although government functionaries argue the Upper House's consent is not a must for endorsing the change in Foreign Exchange Management Act regulations notified by the Reserve Bank of India, that doesn't seem to be the case. The question of whether amendments of rules/regulations under Fema need the approval of Parliament would finally be left either for the Supreme Court (where a PIL on the issue is pending) to decide on. Sources said if the Rajya Sabha votes differently from the Lower House, the President might call for a joint session of both Houses for reconciliation of their views.
"Our party will vote in favour of the government tomorrow," BSP leader Mayawati said during the debate on the FDI policy change that is symbolic to India's attempts at a second wave of reforms. The government had won a vote on the issue in the Lok Sabha on Wednesday thanks to the BSP and SP