Pranab Mukherjee set to become India's new president as Congress snubs Mamata

NEW DELHI: Congress on Friday nominated Finance Minister Pranab Mukherjee for the post of president after it secured the support of two key regional parties, outmanoeuvring Mamata Banerjee, the mercurial chief minister of West Bengal who had pitched for former president APJ Abdul Kalam.

The nomination capped a long career spanning four decades in which the politician from West Bengal has served in the cabinets of four Congress prime ministers - Indira Gandhi, Rajiv Gandhi, PV Narasimha Rao and Manmohan Singh.

The 77-year-old, who seems odds on favourite to win the presidency, owes his likely success to deft political footwork displayed by Sonia Gandhi. The Congress president personally networked with Mulayam Singh Yadav and Mayawati, the leaders of the Samajwadi Party and Bahujan Samaj Party, respectively.

Sources in the Congress said Gandhi was in touch with the UP leaders since Wednesday after Banerjee precipitated a crisis by publicly rejecting Mukherjee's candidature.

Mukherjee's imminent departure from North Block, the seat of the finance ministry, has generated intense speculation on the identity of his successor. For now, according to some sources in the know, Prime Minister Manmohan Singh is likely to keep the finance portfolio with himself. Some Congress leaders say this would send out positive signals to industry and investors.





PM MAY RETAIN FINANCE PORTFOLIO

Sources in the government said a proposal to set up an expert committee to advise the prime minister on economic issues is being seriously considered. The panel could include Bimal Jalan, YV Reddy and Shankar Acharya.

At a meeting of the UPA on Friday, boycotted by Banerjee, Gandhi announced Mukherjee's candidature and sought support from across the political spectrum. The prime minister followed this up by seeking support of senior Opposition leaders such as LK Advani and Sushma Swaraj for Mukherjee's candidature.

The finance minister, on his part, reached out to his bitterest opponent, referring to the West Bengal chief minister as his "sister" and urging her to support him.

Although BJP leaders late Friday evening indicated they would not allow Mukherjee to win uncontested, their preferred candidate, Kalam, has made it plain that he would not like to contest the election. BJP may eventually have to reconsider its strategy as its ally JD(U) is not keen on putting up a candidate against Mukherjee.

Gandhi's announcement came after three days of eyeball-to-eyeball confrontation between the Trinamool chief and Congress. Samajwadi Party made things easier for Congress before the UPA meeting by disassociating with Banerjee's plans to sponsor Kalam's candidature. "We suggested three names, but majority wants Mukherjee to be the next president," Mulayam Singh Yadav told reporters in Lucknow after the formal announcement.

For Banerjee, who has so far got the Congress-led UPA government to resile from a range of decisions such as the move to allow foreign supermarkets to invest in India, the firmness displayed by Congress comes as a serious setback as it has been able to override her veto.

In what signalled seriousness and determination, both Congress and Banerjee had taken actions that raised the risk of a break-up. While Banerjee said she was willing for a phase of "ekla chalo re" (walk alone), Congress had sent out a clear message that it was no longer willing to blink.

But the Congress-SP deal is certain to come at a price as Mulayam Singh Yadav is known to drive a hard bargain for shifting political positions.

Mukherjee's elevation will set the stage for some crucial changes in the government. The Congress leadership, however, has not yet decided on the shape of the reorganisation. "A reshuffle would not take place immediately," said a Congress leader on condition of anonymity.

The prime minister taking charge of the finance ministry is expected to soothe the frayed nerves of investors. Singh, it is widely believed, was not on the same page with Mukherjee on the retrospective taxation proposal made in the budget.

The waning clout of Mamata could also encourage him to act on reform measures in the financial sector that have been kept on hold. The pension reforms bill, for instance, could not be cleared by the Cabinet because of Trinamool's opposition.

The assessment that Singh would keep the finance ministry stems from the feeling that Congress is not keen on shifting P Chidambaram out of the home ministry.

Congress will also have to find a new leader of the Lok Sabha, a position occupied by Mukherjee. It could go to either Chidambaram or Sushil Kumar Shinde, Congress leaders, who did not wish to be named, said.