In a predominantly left bastion as West Bengal, Mamata has successfully hijacked the slogans of the Left. In her Lok Sabha election campaigns, she harped on the theme that the CPI-M has abandoned the poor people who voted it to power in 1977 and has kept them in that position for the last 32 years; and that the party is espousing the causes of the industry barons, promoters and the land sharks. This was true to a great extent and the common masses, who formed the core base of the Left in the last three decades got so much disenchanted that a good section of them voted with a vengeance against the CPI-M for its anti-poor policies.

Trinamool Congress has won a massive victory on the basis of its slogan of Ma Mati and Manush; this emphasis on poor and unorganised has been adequately reflected in its election manifesto which has mentioned in clear terms the Party's opposition to any form of disinvestment in the public sector undertakings of the Centre. Similarly, TC is opposed to foreign direct investment in retail as also participation of the big Indian houses in the retail trade. This stance assumes significance in West Bengal since the Left Front Government has allowed limited participation of the big houses in retail; and even as a part of the national policy, a German firm has been allowed to open business in single brand retail in the state.

Mamata has now announced that her party will fight within the UPA against the FDI policy in retail and the participation of Indian houses in the retail trade in a big way. She has not yet spelled out details of the nature of participation of the Indian houses but the very fact that she is opposed to the Indian big houses also will mean that companies like Reliance Industries, Aditya Birla and ADAG will have second thoughts on expansion before the Centre comes out with any comprehensive retail trade policy.

As of now, three important bills are pending with the Finance Ministry. And the chambers are putting pressure on the new government to go ahead with these major reform initiatives. The first is the Insurance laws amendment bill, which aims to raise the cap on FDI in insurance firms from 26 per cent to 49 per cent. Insurance being a capital-intensive industry, is expected to benefit from access to global capital, according to the industry sources. The second is the banking regulations bill providing for voting rights on the lines of the shareholding. The bill seeks to dilute the government shareholding in the public sector banks.

Earlier the Left stand was that there is no need to dilute government equity in the PSBs since the banks are doing well and the induction of private equity will not help in improving the efficiency of banks. The latest global developments in the financial sector also strengthened the argument of the left that no liberalisation of the banking and insurance sector is needed after taking lessons from the fate of the leading US banks and insurance companies.

Left has lost its clout to influence the government policies with its strength in Parliament coming down from the earlier 61 to 24 in the new Lok Sabha. Further, the Manmohan Singh government does not depend on left for support. The UPA with its own majority and a lot of outside support can aggressively push through any reform measure. But that is not going to happen as the powerful Trinamool Congress group of 19 MPs with another ally SUC with one MP will be taking positions, which the Left used to take earlier. The Left pressure may be of no significance now but the task has been taken over by its bete noire, Mamata Banerjee who is expected to play the role in the government of a responsible opposition in respect to the so-called pro-reform policies.

During the first tenure of the UPA, Left pressure led to the dismantling of the disinvestment department and the government was not able to raise requisite resources through disinvestment of the profit-yielding PSUs. The same situation will continue during the second tenure also as the present UPA government cannot ignore the views of Mamata Banerjee who has the largest number of seats among the allies of the Congress. Since Mr. Pranab Mukherjee is the Finance Minister and both Pranab and Mamata work in tandem vis-a-vis West Bengal politics, it will be easier for Mamata to get her views approved by the Cabinet.

In West Bengal, the heavy industries department of the UPA government in its last tenure, cleared stake sales in Andrew Yule's subsidiaries. This will not be disturbed since it has already taken place. But from now on, Trinamool Congress will not allow any other stake sale to private parties in the profit-earning PSUs. However, the government position is that already a list of 40 PSUs has been prepared for divestment, but the modus operandi will be decided only after the new cabinet clears the guidelines. The Finance Ministry will certainly opt for a policy like raising resources through the IPO route rather than direct stake sale to appease the Trinamool Congress.

What a sea change in scenario? The Left battle has been taken up by Trinamool Congress and the Congress is trying to appease the TC, its staunch ally, the same way as it tried to do to its outside supporter Left in the first four years of the UPA regime. The Left has not only lost the electoral strength, it has also allowed its arch rival Trinamool Congress, especially its leader Mamata Banerjee, to take away its propaganda plank on major economic issues. (IPA)