Kolkata/New Delhi: The government is considering putting on hold a possible vote on its decision to allow 51% foreign ownership of multi-brand retail stores. Sources tell that the Congress-led UPA is not keen to test its strength on the floor of the House on this issue. A final decision in this regard is likely to be taken on Wednesday.
The government's decision may also partly be based on key-ally Mamata Banerjee refusing to support the move. Ms Banerjee told the Prime Minister today that her party cannot support the government's move on FDI. The West Bengal Chief Minister, who has 18 Lok Sabha MPs, said, "I don't want the government to be toppled on this issue. This is a very sensitive issue. But at the same time, it is not possible for us to support FDI (Foreign Direct Investment) entry into retail sector. I am sorry." Ms Banerjee said that she conveyed this on the phone to the PM and that she pointed out that her party's manifesto clearly articulates its stand against FDI.
The PM and other senior ministers have stressed that individual states can choose to adopt the new policy or ignore it. Commerce Minister Anand Sharma told NDTV that flexibility was included "in deference" to Ms Banerjee's point of view.
If her party, the Trinamool Congress, does not vote with the government, it could lose the crucial vote. If she abstains, the government will have a wafer-thin majority, leading to a serious loss of credibility.
The Opposition has refused to let Parliament function unless the government agrees to a debate and vote on its reforms in retail. After trying to negotiate the text of the adjournment motion that would be voted on, the government now seems to be leaning away from a vote. "It is an Executive decision. And it is enabling policy framework that does not require, even remotely, any legislative change or tweaking," said the Commerce Minister. "Parliament is supreme, but it's only when it comes to legislation... what the Cabinet has done is the prerogative of the Executive of the Government of the day."
Mr Sharma also claimed in his interview on Here that two states where the BJP is in power - Himachal Pradesh and Gujarat - had on record expressed their support for Foreign Direct investment or FDI in retail. Mr Sharma said both states had sent letters to this effect to the Parliamentary Standing Committee on Commerce within the last year. However, the BJP's Shanta Kumar, who heads this committee, said that's not true. "I spoke to Narendra Modi (the Gujarat CM) and Prem Kumar Dhumal (the Himachal CM). Both said they were against it and would fight against FDI in retail."
Documents show responses from 21 states and union territories sent to the committee headed by Mr Kumar
Himachal Pradesh, which is toeing the party line against FDI in retail, noted that 'instead of total blanket ban on big retailers regulatory mechanism may be put in place.' The state government said a limit should be fixed on the quantities of food grain a retailer could store; but big malls would help in giving consumers a greater choice. The Narendra Modi government in Gujarat said ' the methods of the big retailers should be studied before arriving at a final decision.' Gujarat wanted safeguards and a proposal to assist small traders. But it did not ask for a blanket ban on FDI in retail. And Punjab, which is ruled by key-NDA constituent - the Akali Dal- had said that 'attracting FDI in the domestic corporate sector is necessary for new investment in the state'. The state government felt that large retailers eliminate the middleman - this allows farmers to get better prices and consumers to get products at reasonable rates. BJP-ruled Karnataka was non-committal on the issue, but Congress-ruled states like Delhi, Goa, Manipur and Mizoram supported the proposed blanket ban.
The BJP wants to initiate a debate and vote in Parliament on the basis of a strongly-worded adjournment motion that categorically asks for a "rollback of the government's decision. This is not acceptable to the Congress. Nearly half this winter session of parliament has been wasted without getting down to any work. Now, Parliament is adjourned till Wednesday, giving the Congress some time to work on its strategy.
The government's decision may also partly be based on key-ally Mamata Banerjee refusing to support the move. Ms Banerjee told the Prime Minister today that her party cannot support the government's move on FDI. The West Bengal Chief Minister, who has 18 Lok Sabha MPs, said, "I don't want the government to be toppled on this issue. This is a very sensitive issue. But at the same time, it is not possible for us to support FDI (Foreign Direct Investment) entry into retail sector. I am sorry." Ms Banerjee said that she conveyed this on the phone to the PM and that she pointed out that her party's manifesto clearly articulates its stand against FDI.
The PM and other senior ministers have stressed that individual states can choose to adopt the new policy or ignore it. Commerce Minister Anand Sharma told NDTV that flexibility was included "in deference" to Ms Banerjee's point of view.
If her party, the Trinamool Congress, does not vote with the government, it could lose the crucial vote. If she abstains, the government will have a wafer-thin majority, leading to a serious loss of credibility.
The Opposition has refused to let Parliament function unless the government agrees to a debate and vote on its reforms in retail. After trying to negotiate the text of the adjournment motion that would be voted on, the government now seems to be leaning away from a vote. "It is an Executive decision. And it is enabling policy framework that does not require, even remotely, any legislative change or tweaking," said the Commerce Minister. "Parliament is supreme, but it's only when it comes to legislation... what the Cabinet has done is the prerogative of the Executive of the Government of the day."
Mr Sharma also claimed in his interview on Here that two states where the BJP is in power - Himachal Pradesh and Gujarat - had on record expressed their support for Foreign Direct investment or FDI in retail. Mr Sharma said both states had sent letters to this effect to the Parliamentary Standing Committee on Commerce within the last year. However, the BJP's Shanta Kumar, who heads this committee, said that's not true. "I spoke to Narendra Modi (the Gujarat CM) and Prem Kumar Dhumal (the Himachal CM). Both said they were against it and would fight against FDI in retail."
Documents show responses from 21 states and union territories sent to the committee headed by Mr Kumar
Himachal Pradesh, which is toeing the party line against FDI in retail, noted that 'instead of total blanket ban on big retailers regulatory mechanism may be put in place.' The state government said a limit should be fixed on the quantities of food grain a retailer could store; but big malls would help in giving consumers a greater choice. The Narendra Modi government in Gujarat said ' the methods of the big retailers should be studied before arriving at a final decision.' Gujarat wanted safeguards and a proposal to assist small traders. But it did not ask for a blanket ban on FDI in retail. And Punjab, which is ruled by key-NDA constituent - the Akali Dal- had said that 'attracting FDI in the domestic corporate sector is necessary for new investment in the state'. The state government felt that large retailers eliminate the middleman - this allows farmers to get better prices and consumers to get products at reasonable rates. BJP-ruled Karnataka was non-committal on the issue, but Congress-ruled states like Delhi, Goa, Manipur and Mizoram supported the proposed blanket ban.
The BJP wants to initiate a debate and vote in Parliament on the basis of a strongly-worded adjournment motion that categorically asks for a "rollback of the government's decision. This is not acceptable to the Congress. Nearly half this winter session of parliament has been wasted without getting down to any work. Now, Parliament is adjourned till Wednesday, giving the Congress some time to work on its strategy.
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