Gandhi is believed to have advised both Mukherjee and Banerjee to settle their differences which arose following a heated exchange in the CCI meeting over budgetary support to 24 new projects the Railway Minister is keen to announce in the Railway Budget on February 24.
Banerjee, who heads the Trinamool Congress, a UPA constituent, reportedly broke down after Mukherjee declined to promise budgetary support to the projects. Mukherjee is believed to have questioned why she had brought them up before the CCI with just three days left for the Budget session to start.
Supported by the Prime Minister on this count, the finance minister turned down Banerjee’s request for additional allocation for the Railway Safety Fund.
According to sources, Minister of Housing and Urban Poverty Alleviation Kumari Selja, who was present at the CCI meet, tried to calm down Banerjee. Union Heavy Industries Minister Vilas Rao Deshmukh and others too tried to cheer her up.
While Mukherjee stuck to his position, Gandhi, sources said, “requested” the Finance Minister on Friday to consider at least some of the projects Banerjee had proposed. Of the two dozens new projects proposed by the railways minister, more than 10 were for West Bengal where the Trinamool Congress is laying the groundwork for the Assembly polls early next year.
Sources said both Singh and Mukherjee told Banerjee on Thursday that it would be difficult to commit financial support to all the new projects as the government was trying to minimise high fiscal deficit.
The Prime Minister is understood to have told Banerjee that her ministry should focus on enhancing revenue generation to support some of its projects.
While the Congress, like the Trinamool, wants the Railway Budget to be aimed at the aam aadmi (common people), the UPA government is concerned over the probable impact of uncontrolled populism in one sector at the cost of others.
Thursday’s CCI meet finally approved funding for the new coach factory at Kanchrapara-Halisahar Railway Complex near Kolkata. Although Banerjee had announced the project in her July 2009 Railway Budget speech, it took her seven months to bring it before the CCI.
The panel cleared funding for an electric locomotive factory and a diesel loco manufacturing unit in Bihar — both announced by former Railway Minister Lalu Prasad during the UPA government’s first tenure.