M A I N   N E W S

Govt attempts to rope in Left on pension, banking Bills
Tribune News Service

New Delhi, November 24
In move to push the economic reforms and break the deadlock on the contentious Pension and Banking Bills, the government today made fresh proposals to the Left parties on the proposed legislations which the Communists, the crucial outside supporters, said they would consider.

The government briefed them about the "possible changes" they were considering in these two crucial Bills to keep in view the concerns expressed by the Left, CPM Politburo member and Rajya Sabha member Sitaram Yechury said without elaborating on what the fresh proposals were.

Mr Yechury, who along with other Left leaders, met Defence Minister Pranab Mukherjee and Finance Minister P. Chidambaram, said the Left leaders would discuss the fresh proposals and get back to the government soon.

Asked who, the government or the Left, was changing its stance on these crucial matters, he said “we (Left) have publicly stated our position on these issues. It is obvious who is.” The Manmohan government is eager to pass the Pension Funds Regulatory and Development Authority (PFRDA) Bill in the winter session of Parliament.

The biggest hurdle in the way of the PFRDA Bill is the Left’s demand that the government ensures employees continue to get a guaranteed pension (50 per cent of their monthly salary calculated on the basis of the average of the monthly salaries in the previous three years). The government had earlier rejected the demand saying that pension is no more a statutory benefit, but a contributory one.

The Left’s argument is that setting up a pension regulatory authority board and investing the pension amount in the stock market will affect the “secure life” of a pensioner.

The burden of pension has been growing steeply, both on the Centre as also the state governments, throwing their finances haywire.

The government is hopeful of pushing the Banking Regulation (Amendment) Bill in the current session with the new proposals. Allies of the UPA maintain that the proposed removal of the 10 per cent cap on voting rights would allow foreign banks to take over private Indian banks, which is not in the interests of the country.