The Trinamool Congress had vetoed a slew of reform measures, including the PFRDA Bill, saying people's life savings should not be invested in the capital markets, FDI (foreign direct investment) in the insurance sector, decontrol of diesel and LPG prices, the land acquisition Bill and others.
However, the Centre is now in a mood to stare Trinamool chief Mamata Banerjee down.
In fact, sources said the Centre would do its best to edge Banerjee out of the government, replace her with Mulayam Singh Yadav and get economic reforms going.
The crucial railways ministry is with Banerjee's party and in desperate need of reform. Banerjee sacked former minister Dinesh Trivedi because he attempted changes in the fare structure.
Banerjee is also opposed to FDI in civil aviation and retail. However, as Yadav's Samajwadi Party is also opposed to FDI in retail, it is hard to see how this measure will clear the Cabinet even if the Trinamool is replaced.
The government is conscious that diesel and LPG subsidies have to be pared if not ended altogether.
It was chary of doing that because it feared Banerjee's wrath. Now, with Yadav on board, the measures could happen in a few months.
