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[OS] INDIA/SECURITY - Crisis-hit India government defers parliament reopening

Released on 2013-09-09 00:00 GMT

Email-ID 2989647 Date 2011-06-21 15:25:18 From genevieve.syverson@stratfor.com To os@stratfor.com

[OS] INDIA/SECURITY - Crisis-hit India government defers parliament

reopening





Crisis-hit India government defers parliament reopening



21 Jun 2011 11:25

Source: reuters // Reuters



http://www.trust.org/trustlaw/news/crisis-hit-india-government-defers-parliament-reopening/



By C.J. Kuncheria



NEW DELHI, June 21 (Reuters) - India's parliament will reopen two weeks

later than usual, giving the embattled government more time to reach an

agreement with civil society over drafting tough anti-graft legislation

and head off any more national protests.



Prime Minister Manmohan Singh's popularity is at its lowest since he first

came to power in 2004. Policymaking has been paralysed by a series of

high-profile corruption scandals and Asia's third-largest economy is

slowing down on high inflation and interest rates.



The government is trying to avoid a repeat of April's anti-graft protests

by talking to a team of civil society activists who had forced it to

fast-track a decades-old proposal for an independent ombudsman to

investigate corruption in high places.



But the negotiations have seen differences emerge over the contents of the

legislation, most importantly whether the prime minister should be

investigated by the ombudsman.



A popular yoga guru's hunger strike against corruption had to be broken up

by force this month. Anna Hazare, a popular Gandhian activist who had

fasted in April to demand the bill, has vowed a repeat if the new law is

not tough.



The monsoon session of parliament will begin on Aug. 1 and run till Sept.

8, Parliament Affairs Minister Pawan Bansal told reporters, two weeks

later than it usually convenes.



"They would like to get things in order. It's been a very rocky period for

the government," said political analyst Mahesh Rangarajan. "Otherwise

legislative business will not be possible. I'm not sure it'll work, it'll

be a stormy session."



Apart from the anti-corruption bill, the government may also propose laws

to make it easier for industries to acquire land, a step seen key to take

the edge off protests that have delayed projects like POSCO's $12 billion

steel mill.



The last two sessions of parliament saw almost no legislative business

conducted, with the main opposition Bharatiya Janata Party forcing

shutdowns over a telecoms scandal that may have cost the government $39

billion in lost revenue.



Economists, industrialists and bankers have warned the policy paralysis

could make India unattractive for foreign investors and lead India into an

economic slump that will be difficult to recover from.



The deferral may also give Singh a chance to reshuffle his cabinet,

following up on his earlier comments for bringing in young and efficient

administrators into the government where many of the ministers are above

70-years-old.



The cabinet has long been criticised for being out of touch with public

sentiment, mired in accusations of corruption against ministers and

lacking teeth to take decisions.



The Congress-led coalition is not expected to fall as it still has a slim

majority in parliament. Some of its allies are also mired in corruption

scandals and would not want to face the wrath of the electorate. (Editing

by Paul de Bendern and Sugita Katyal)









