Indian Government to set confidence vote date

INDIA: India’s government will announce the date for a confidence vote on Friday as it fights for survival after its communist allies withdrew their support to protest against a U.S. nuclear deal.

A regional party has stepped in to replace the communists who opposed the deal as harmful for India, but Prime Minister Manmohan Singh’s government still needs the support of smaller parties and independent lawmakers to survive the confidence vote.

The government will fall if it loses the vote, triggering early elections and damaging chances of the deal going through.

The vote is widely expected to take place within two weeks.

Trying to cobble a parliamentary majority, government allies were closeted in meetings on Friday with potential supporting parties, many of who are keen to avoid polls at a time when inflation is at a record high.

“We are meeting our potential allies,” a spokesman for the Congress party, which heads the ruling coalition, said. “Then our party leadership will decide on the date and communicate it to the president.”

The government’s worries have been compounded by vacillation among some of its long-standing partners who are worried supporting a pact with the United States may alienate some voters ahead of national elections next year.

The balance of power is held by the regional Samajwadi Party which said its 39 lawmakers will back the government as it tries to cross the majority mark of 272. Even then, the government still needs around seven votes from smaller parties.

“I think the government will survive the confidence vote, perhaps with around a 10-vote margin,” said political commentator Kuldip Nayar.

India’s main stock exchange fell last week in part due to the political uncertainty, and has largely see-sawed as much on the news of the exit of the communists as global economic factors.

The nuclear deal, which will help open up the international nuclear trade to India, will unlock an energy market worth some billions of dollars for major European and American nuclear firms.

New Delhi, Friday, Reuters