Pushed to the wall, Mamata Banerjee takes to the streets

West Bengal's Mamata Banerjee government faces challenges on several fronts after the central government decided to allow up to 51% foreign direct investment (FDI) in multi-brand retail and raised diesel prices steeply.

Banerjee's Trinamool Congress, which had consistently been opposing overseas investments in multi-brand retail in the "interest of the country's farmers", is hardening its stance against the government's decision to finally open up India's door for global retail giants like Walmart and Carrefour.

Yet another transport strike looms over Bengal, with operators deciding not to run their vehicles for an indefinite period if the state government does not raise fares. The government has remained non-committal on this demand.

The Cabinet Committee on Economic Affairs (CCEA), chaired by Prime Minister Manmohan Singh - who had so far been accused of struggling with policy paralysis - cleared the major reform agenda a day after raising diesel prices by a steep Rs5 per litre and restricting the supply of subsidised cooking gas to households.

This enraged the Trinamool, the United Progressive Allaince government's second-largest constituent, which gave a 72-hour deadline to the Congress to rethink the decisions.

The Trinamool, which is ruling West Bengal, took no time to call a meeting of its parliamentary party September 18. The meet will be attended by party supremo and Chief Minister Banerjee.

"We are very much serious about these developments and ready to take hard decisions if these issues are not reconsidered," a fuming Banerjee posted on her page on social networking site Facebook.

"We cannot support price hike on diesel and reduction in number of subsidised LPG cylinders. Friday, a decision has been taken allowing FDI in retail sector. It is a big jolt. We are really sorry. We cannot support anything that is against the interest of the poor and common people," the firebrand leader blasted.

Banerjee's reaction to the prime minister's decision, aiming to kickstart a slew of reforms to boost the slowing economy, was a strong response to what seems like a slap in her face.

Although the cabinet had decided to allow up to 51% FDI in multi-brand retail last November, the move was kept in abeyance following strong protests from some UPA allies, mainly the Trinamool.

Political observers say the Trinamool Congress may not think of quitting the UPA government because there are few alternatives.

"Trinamool is not in a position to gain something by quitting the central government. So Banerjee will try to put pressure on the centre to reconsider its decisions or will resort to bargaining with the Congress to arrive at a middle-path like limited FDI in retail," Samir Kumar Das, professor of political science at Calcutta University said.

Das observed that the Trinamool would not consider joining the BJP-led National Democratic Alliance, fearing loss of minority votes. Similarly, the Third Front has already proved to be a "non-starter".

The Trinamool-led government in the state is also facing tough times from the taxi and bus operators. The Joint Council of Bus Syndicate, one of the largest bus operators of the state, has decided to go on an indefinite strike from Sep 17.

The strike will lead to 35,000 buses across Bengal going off the roads, out of which 6,500 will be in Kolkata alone.

State Transport Minister Madan Mitra, however, asked the transport operators not to rush to decisions too soon, saying, "Please bear with us please do not go for strike. If fares are increased, the common people will suffer."

Mitra urged bus and taxi operators to take part in the protest rally led by Banerjee on Saturday to register their protest.

All eyes will now be on chief minister, as she hits the streets of Kolkata on Saturday, protesting the fuel price hike.