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Indian coalition braced for resignations

INDIA: Indian Prime Minister Manmohan Singh faced a crunch day Friday in his bid to drive through economic reforms, with a one-time coalition ally set to formally withdraw support from his beleaguered government.

Barring an unexpected last-minute compromise, six ministers from the regional Trinamool party were to resign their posts in New Delhi and its 19 lawmakers will end their uneasy alliance inside the coalition, which came to power in 2009.

The move will leave Singh’s Congress party running a minority government, dependent on outside support from other regional parties and vulnerable to falling before the scheduled date for the next national elections in 2014.

“We have enough friends and we will continue working for the greater good of the economy,” reformist Finance Minister P. Chidambaram told reporters on Thursday, indicating Congress had no intention of compromising.

Years of tension between Congress and Trinamool exploded last week after Singh’s government announced a string of reforms including allowing foreign supermarkets into the retail sector and hiking the price of subsidised diesel.

Fiery Trinamool chief Mamata Banerjee initially gave the government 72 hours to withdraw them, then announced on Tuesday that her party would quit on Friday unless her demands were met. “The chairperson of the TMC (Trinamool) clearly spelt out the three issues,” vice-president and spokesman Derek O’Brien told AFP, saying the supermarket reform and changes in diesel and gas policy should be reversed.

If the demands were not met by 3:00 pm (0930 GMT) on Friday, Trinamool would complete its withdrawal, he explained. Banerjee has said she is “totally against” the idea of opening India’s retail sector to global chains such as Walmart and is angered by the hike in diesel prices. She has accused the left-of-centre Congress party of being “anti-poor”. On Thursday, shopkeepers, traders and labourers blocked railway lines and closed markets across the country in a day of protest organised by trade unions and opposition parties.AFP

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