UPA crisis Live: Money doesn't grow on trees, says PM

8.20pm: ‘At times we need to say no to easy options and take hard decisions’ The Prime Minister ended with an impassioned appeal to the country. Hitting back at criticism, he seemed to be asking for a second chance to re-do a 1991. “There were many detractors at that time too. But now, you can see how the economy has grown. It has grown at the rate of 8.2 percent a year. Poverty has come down, people have jobs. I need your trust, I need you to hold my hand strongly so that we can bring the country back to the path of progress,” he said. Now, that’s a speech straight out of the speech style-book of a certain Ms Banerjee! 8.10pm: States have an option to not implement FDI in retail Following the virulent attack on the government, even by the allies, as expected,  the PM emphasized that the states have an option to not implement it. “We know a lot of parties have a problem with this, but they have an option to not allow FDI in their states. However, it’s absolutely wrong on their part to instigate the youth and the masses by misleading them with wrong information,” he said. 8.10pm: The PM tries to justify that FDI will help farmers “We have made sure that the farmers benefit from FDI in retail. We have included a clause in our agreement by which the investors will have to invest in the upgrade of cold storage and the transport system. This will make sure the farmers don’t suffer losses by their crop rotting in old cold storage godowns or in transit to markets,” said Singh. The Prime Minister said that one-third of the farmers crop goes waste like that, something that will be stopped by this measure. “I’ll try my best to get my country back to the path of fast and inclusive development. In 1991, when I took some decisions so make our economy an open one, there were a lot of critical, disruptive voices. They tried to disrupt the process, but failed. They will fail again now. And we all know, how the country benefited from those measures.” 8.00pm: PM explains why the economic decisions have been taken Like expected, the Prime Minister said that the economic reforms were made to make sure that the grassroots benefit from it - the same grassroots, Mamata’a maa maati maanush,  for whose benefit the TMC claims to have walked out of the government. “We have succeed in reining in the economic slowdown. We can also rein in inflation. The measures that we have taken will make sure that the economy is stable,” he said. “Where will the money, to give all the subsidies come from. The money doesn’t come from trees, does it? If we go bankrupt, we’ll not get foreign investment, the youth will lose jobs. Back in 1991, we had faced this situation where no foreign business was willing to invest in our country. That’s why we have to increase prices. Given the prices of fuel in the global markets, there was a need to increase the price by Rs 17. But we just hiked it by Rs 5,” he explained. Singh explained that intensive survey went behind the LPG cylinder cap. “We found that the poor people don’t use more than 6 cylinders a year. That’s why we decided on that cap,” he added. 7.15pm: Digvijaya Singh says that the PM will explain the government’s economic measures As the electronic media worked up a frenzy in anticipation of the PM address, Congress leader Digvijaya Singh gave viewers a brief outline of what to expect - a economic jargon-heavy defence, it seems. “The PM will explain to the country, the limitations within which we are working. He will also clear the air around the fears people have about our economic measures and will tell you about the possible consequences of our decisions.” 6.03 pm: Key Congress meet underway With the TMC alliance now officially over, the Congress core committee meeting is in a meeting, ostensibly to decide what to do next. Prime Minister Manmohan Singh is expected to address the nation at 8pm. This is the second meeting of the Congress Core Group which had met only two days back, a day after Mamata Banerjee announced the withdrawal of support. Government managers are confident of the numbers even after the withdrawal of support by the 19-member Trinamool Congress, which has been the second largest constituent of the 15-party ruling alliance. After Trinamool’s withdrawal of support, the UPA government’s support in Lok Sabha comes down from 273 to 254 but the Samajwadi Party (22) has said it will provide outside support. For a simple majority, government needs the support of at least 273 MPs in the House of 545. 5.19 pm:  Mukul Roy calls for vote on FDI Former Railways Minister Mukul Roy has said that they did not want a vote of no confidence on the government, and wanted a vote on FDI instead. “The government should take a vote from the Parliament. If a majority of the members want FDI they should find that out”, he said. Roy went on to repeat that the TMC withdrew support from the government because it had taken an anti-poor, anti-farmer policy. He added that the TMC would continue their fight against FDI, price hike, and the LPG cap. 5.04 pm: Sougata Roy confirms formal resignation Senior TMC leader Sougata Roy says that the letters of resignation were tendered to the Prime Minister and handed over their letter of support from the Union government to the President. He says that apart from that, they did not say anything extra. He declines to give media information about the Prime Minister’s resignation saying, “whatever was said or not said to us is confidential information”. 4.52pm: PM said he was sorry that TMC MPs resigned It is done. The TMC alliance with the UPA is now formally over. The Ministers say that the meeting lasted not more than two to three minutes, and said that the Prime Minister had declared his sadness at the decision and thanked them for their services. 4.33 pm: TMC MPs head to Rashtrapati Bhavan, ’tigress’ Mamata makes fiery speech in WB The TMC MPs are now in talks with President Pranab Mukherjee, after having submitted their resignations to Prime Minister Manmohan Singh. Meanwhile party leader Mamata Banerjee is not being idle in their absence. Addressing a rally in West Bengal, the fiery leader said, “I am not scared of anyone. As long I live, I’ll live like a tigress” 4.15 pm: TMC meeting with PM ends It appears to have been a very short meeting. The TMC MPs have emerged out of the Prime Minister’s residence and have simply gotten in to their cars and driven away without making any comment to the media gathered outside. Did the Prime Minister simply take their resignations and walk away? Was there any discussion at all? At this point we have no clue. The MPs are now on their way to the President’s house. 4.10 pm:  Patnaik on the fence on FDI BJD leader Naveen Patnaik has said that he will take a clear stand on FDI only after  thoroughly examining the proposals. His stand is a clear departure from that of several parties like the BJP and TMC which have categorically rejected the reforms. When asked if he was being a fence sitter on the issue he said, “As far as the BJD is concerned, we maintain equi distance from both the BJP and Congress”. 3.48 pm: TMC MPs head to PM residence to tender resignations The end is nigh. In what will now be a largely symbolic gesture, the six TMC MPs are en route to the Prime Minister’s residence at 7 Racecourse road to tender their resignations. After handing over their resignations to Manmohan Singh they will visit President Pranab Mukherjee and withdraw their letter of support to the UPA. 3.08 pm: TMC readies resignations Media are mobbing TMC MPs in Delhi, who are readying their resignations. Sudeep Bandhopadhyay the reporters that although they are resigning, their moral stance means that they will stay in people’s hearts. When asked what the TMC move has achieved in the wake of the Samajawadi Party offering to support the UPA, he said, “What the TMC has shown will be seen when Parliament works”. An ominous sign perhaps for the future of the FDI reforms that will have to be passed in Parliament. 1.48pm: TMC Minister’s to meet PM at 4pm The TMC Minister’s who left for Delhi this morning, will visit the PMO and submit their resignations at 4pm, according to the latest reports coming in. Following this, they will visit President Pranab Mukherjee and withdraw their letter of support. The meeting was initially supposed to take place at 3pm. Meanwhile Prime Minister Manmohan Singh will address the nation at 8pm, where he is expected to educate the public about the necessity of the reforms. https://twitter.com/PMOIndia/status/249056132671352833 1.25pm: Dinesh Trivedi breaks ranks with TMC Former Railway Minister Dinesh Trivedi has announced that he will not be accompanying the other TMC members to the PMO or President’s house to withdraw support. “I will not be going with the other TMC MPs to meet the President to withdraw support”, he told the CNN-IBN news channel. However senior TMC leader Sougata Roy underplayed the incident, saying that Trivedi had attended the meeting where the decision was taken to withdraw support from the government, and that since he was not a minister the question of him accompanying the other ministers did not arise. Roy added that Trivedi had not spoken against Mamata or opposed her in the past, and he was not aware of him doing so at present. 1.03 pm: Bansal says government has the numbers In the first definitive government statement after Samajawadi Chief Mulayam Singh Yadav said it would support the UPA government from the outside, Parliamentary Affairs Minister Pawan Bansal said that the government enjoyed the support of 310 MPs. “We have the numbers. This government is stable”, he said in comments to the NDTV news channel. 12.44pm: Zero customs duty, excise duty on non subsidized cylinders In what will come as a huge relief for consumers, the government has made a decision to remove all additional taxes and duty from the price of non subsidized LPG cylinders, which means that the cost of a cylinder is likely to significantly go down. The removal of taxes means that the price of a cylinder could go down by as much as Rs 100, and while still higher than a subsidized cylinder, is much less than initially thought. 12.39 pm: Tit for tat resignations A stung West Bengal Congress party has said that it will resign all its cabinet positions in the West Bengal state government.  The alliance it seems, is irreparably fractured. 11.29 am: Mulayam Singh Yadav to stay with UPA A huge sigh of relief for the Congress here. Samajawadi Party leader Mulayam Singh Yadav has said that he will not withdraw support to the UPA. “I will not allow communal forces to come to power, I will not withdraw support from the government”. He added however that this did not mean that he supported the newly announced economic reforms. However the SP leader also made it clear that the support was not long term. “The third front will definitely come to power in 2014. Who will lead it will be decided in due course”, he said. He also refused to confirm if the party would receive any ministerial posts. On a parting note however, the clearly exasperated leader asked reporters not to stand outside his house. “I will speak to you whenever you want, but it’s not right for you to stand outside like this. Now please go”, he said. 11.25 am: Talk of third front grows louder Talk of the Third Front, first resurrected during the BJP led impasse of the Parliament, seems to be growing even stronger. Samajawadi Party leader Mulayam Singh Yadav brought the possibility up again while participating in a Left led protest against Multi brand FDI.  And now his views have been echoed by JD(S) leader  and former Prime Minister Deve Gowda. 11.09 am: Sharad Pawar says Mamata Banerjee was at UPA meet when FDI decision was taken Leader of the NCP, Sharad Pawar, has slammed Mamata Banerjee, saying that she was fully aware of the decision to allow FDI in multi-brand retail, and that all allies including the TMC had been on board with the announcement. This is in direct contravention to Mamata’s claims that she was not consulted about the cabinet decision and had been shocked by the announcement on FDI. However Pawar said that the government would continue talking to Mamata, adding that he was also scheduled to meet her in the coming week. 10.59 am: Congress reaching out to smaller parties With the Congress set to be a minority government at the centre, reports coming in say that the party is reaching out to a number of smaller parties including Jagan Reddy’s YSR Congress, Nitish Kumar’s JDU and Naveen Patnaik’s BJD. The support of smaller parties will be vital, given that the support of the Samajawadi Party looks unpredictable and Mayawati has not shown her hand at all. The JDU and BJD are both a part of the BJP led NDA. 10.25 pm: Another meeting for the Congress core group in the evening NDTV reports that the Congress core group may be meeting this evening after the TMC withdraws support from the UPA government. According to the report, they will meet to “take stock of the situation”. 10.15 am: Jairam Ramesh to be the next Railway Minister? Jairam Ramesh, who has been calling the Indian Railways the world’s largest open air toilet, might get his chance to do something about it if he is appointed the next Railway Minister. According to CNN IBN, the Congress leader is a front runner for the post, but given he’s not had much luck with the plum ministries in the past, it might not be the best idea to hold your breath for this one. Jyotiraditya Scindia and Sachin Pilot may also be upgraded as the Congress attempts to push its ‘young politicians’ ahead, and prop them up ahead of the next elections which could be just around the corner. Veerappa Moily may lose charge of the Corporate Affairs Ministry, and may remain Power Minister, the report said. And perhaps its a good thing that the Congress has started making its backup plans, because the Trinamool Congress has ruled out any possibility of being placated to stay on in the government. TMC MP Saugata Roy said the “rubicon has been crossed” and there is no question of negotiating with the Congress or UPA. He also had strong words reserved for the Congress after they issued the notification allowing states to allow FDI in multi-brand retail. “It is morally and politically wrong to issue the notification on a day that political parties across the spectrum held a bandh to oppose FDI in multi-brand retail,” Roy said. 9:45 am: Trinamool Congress MPs to resign at 3 pm says Mukul Roy Railway Minister Mukul Roy has said he has been given the “proud privelege” of being the person who will deliver the letter saying that the MPs from the party are leaving the UPA and are resigning from their ministerial posts. " The TMC has entrusted me with the responsibility of communicating our decision to pull out of the anti-people UPA government," he told reporters in Delhi today. The MPs will tender their resignation around 3 pm, he said. After that they will visit President Pranab Mukherjee withdrawing support from the UPA government. The Prime Minister is expected to address the nation after they’re gone, at 6 pm. Mamata Banerjee can update her Facebook page well into the night. A long day ahead with many political updates expected throughout. 9:15 am:  And finally the day is upon us. After breathing fire against the UPA and refusing to engage in negotiations with the Congress, the Trinamool Congress will withdraw support from the government and its MPs will resign from the ministerial posts they hold. The decision comes even as the UPA government has issued the notification allowing states to permit FDI in multi-brand retail, the reason why Mamata Banerjee chose to leave the UPA. In a late night post on her Facebook page, the West Bengal Chief Minister said the Centre’s move was shocking. “I have just come to know through media that Centre has notified FDI in multi-brand retail today. Is it ethical, moral and democratic for a minority government to issue government order forcibly and hurriedly when massive protests against it are taking place across the country?” she said. [caption id=“attachment_463222” align=“alignleft” width=“380”]  No turning back for Mamata Banerjee. PTI[/caption] However, the UPA government is already readying for life without Mamata Banerjee and sources have said the most important of the ministries being managed by the Trinamool Congress, the Railways, is likely to be handled by the Prime Minister following the exit of present Railway Minister Mukul Roy, who was anyway not known for his presence at the ministry. The UPA is also readying itself for a Cabinet reshuffle and it is likely to be announced next week. The plans for the Cabinet reshuffle had begun after it became emminent that the Trinamool Congress was likely and the UPA might require the support of the Samajwadi Party and Bahujan Samaj Party to stay in power. But will it mean ministerial berths for MPs from either of the parties remains to be seen. The Samajwadi Party, which constantly keeps speaking of a third front, is still supporting the government from outside for now despite it being one of the biggest architects of the day-long Bharat Bandh held yesterday to protest the government’s decision. Whether they will back the government in the event of a special session of Parliament, that the BJP is demanding, remains to be seen.