New Delhi, June 6: Barely 24 hours after the Congress Working Committee expressed its concern over the dismal economy hurting the UPA's electoral prospects, the Centre swung into action on Tuesday. The Union cabinet will take up the pension Bill and recapitalization of regional rural banks on Thursday, while civil aviation minister Ajit Singh has been deputed to bring Trinamool Congress chief and West Bengal CM Mamata Banerjee around on the long-pending measure of permitting FDI in aviation, which the government has been pushing for.
Banerjee, who was crucial in blocking FDI in multi-brand retail, has been the stumbling block for the entry of foreign airlines as well.
A Cabinet minister confirmed that Singh has been authorized by the UPA leadership to get Banerjee on board because of its anxiety to clear the proposals, whose delay have stoked the perception of a paralysed government. Keeping Banerjee in the loop will also help the government pre-empt the embarrassment it inflicted upon itself when it rushed to permit FDI in retail without having taken its allies — or for that matter even sections within the Congress — into confidence.
While the commerce & industry ministry had sent the final Cabinet note on FDI in aviation nearly two months ago, opposition from Banerjee has forced the government to put off the issue. The renewed push has been necessitated by the growing urgency within the government to rebut the perception that indecision was a major factor in pulling down economic growth to a nine-year low of 5.3% during January-March.
Commerce minister Anand Sharma also hinted that the government could be raring to take a fresh shy at allowing foreign multi-brand retailers.
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