New Delhi: The Prime Minister and Congress president Sonia Gandhi met with key allies of the ruling coalition today for the first time since Mamata Banerjee quit the government, reducing it to a minority.
Finance Minister P Chidambaram said the Prime Minister focused on the need for economic reforms, "measures that will ensure there is no volatility of the rupee and to ensure investments continue to flow into India."
However, sources tell NDTV some alliance partners made it clear that the government's decision on diesel prices and LPG cylinders will have its impact. Attacking the PM and the Finance Minister, certain allies said economic challenges are one thing but coming back and winning elections is another issue.
Finance Minister P Chidambaram said the Prime Minister focused on the need for economic reforms, "measures that will ensure there is no volatility of the rupee and to ensure investments continue to flow into India."
However, sources tell NDTV some alliance partners made it clear that the government's decision on diesel prices and LPG cylinders will have its impact. Attacking the PM and the Finance Minister, certain allies said economic challenges are one thing but coming back and winning elections is another issue.
Ms Banerjee who was the UPA's biggest ally withdrew support two weeks ago after the PM decided to open up the retail sector to foreign super-stores like Wal-Mart. The DMK, an important member of the UPA, has said it does not back the reforms in retail.
The Congress created the coordination committee of the UPA a few weeks ago, after another important ally, Sharad Pawar, faulted the leading party for not including partners in important decisions. Today's meeting was held as the Congress' coalition with Mr Pawar in Maharashtra is in crisis mode - his nephew, Ajit, has quit as the Deputy Chief Minister of the state over corruption charges which his supporters say have been fuelled by the Congress.
Sources say the state's predicament was discussed and that Mr Pawar's presence at today's meeting reinforces the assurance that he has given recently -that his partnership with the Congress in Maharashtra and at the Centre remains firm.
At today's meeting, the UPA also discussed a strategy to counter the opposition to Foreign Direct Investment or FDI in retail. The BJP, which is holding its own meeting of senior leaders on the outskirts of the capital, has decided to target the UPA for approving what it will position as "anti-people" policies. Thousands of traders and union leaders have opposed the liberalization of the retail sector, though the UPA has stressed that individual states have the right to ignore the policy if they disagree.
Another challenge for the UPA is fighting a new set of charges of graft - the national auditor has said Rs. 1.86 lakh crore were lost because the government allowed coal blocks to be allocated without an auction. The government has rejected this finding, but the Supreme Court has asked for a detailed explanation of the guidelines it followed when sanctioning coal permits.
The Congress created the coordination committee of the UPA a few weeks ago, after another important ally, Sharad Pawar, faulted the leading party for not including partners in important decisions. Today's meeting was held as the Congress' coalition with Mr Pawar in Maharashtra is in crisis mode - his nephew, Ajit, has quit as the Deputy Chief Minister of the state over corruption charges which his supporters say have been fuelled by the Congress.
Sources say the state's predicament was discussed and that Mr Pawar's presence at today's meeting reinforces the assurance that he has given recently -that his partnership with the Congress in Maharashtra and at the Centre remains firm.
At today's meeting, the UPA also discussed a strategy to counter the opposition to Foreign Direct Investment or FDI in retail. The BJP, which is holding its own meeting of senior leaders on the outskirts of the capital, has decided to target the UPA for approving what it will position as "anti-people" policies. Thousands of traders and union leaders have opposed the liberalization of the retail sector, though the UPA has stressed that individual states have the right to ignore the policy if they disagree.
Another challenge for the UPA is fighting a new set of charges of graft - the national auditor has said Rs. 1.86 lakh crore were lost because the government allowed coal blocks to be allocated without an auction. The government has rejected this finding, but the Supreme Court has asked for a detailed explanation of the guidelines it followed when sanctioning coal permits.
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