Pranab asks Opposition to let states take call on FDI move

Finance minister Pranab Mukherjee on Friday said the opposition parties should not stand in the way of states that want to go ahead with allowing foreign direct investment (FDI) in multi-brand retail.

He said efforts are on to work out an acceptable motion to face a Parliamentary vote. "You can exercise your authority within your territorial limit, but don't stand in the way of others who want to implement it.

Therefore, let there be an enabling provision and this is an enabling provision," he said at a media function in Delhi. The minister lamented that narrow political gains were hampering early implementation of a policy framework even though it was being done in a calibrated and sensitive manner. Mukherjee said all the facilities that are required to be implemented on the ground for FDI in retail are to be provided by the state governments.

Govt firm on retail FDI, tries to woo allies

Essentially, one needs to keep in mind that this can be done by the states because they have the authority to issue the trade licence according to the law and they have the authority to provide land and other facilities. Asking political parties to rise above narrow political interests, he warned, "In the absence of timely action or no action at all, it is the farmers and consumers who would suffer and the nation would miss out an opportunity."

MUST SEE: FDI in retail: What's in store

"I do hope ultimately we will be able to persuade those who are still hesitant," he added. "The global experience shows that organised retail with well-integrated supply and cold chains can significantly cut down postharvest wastage, while providing better returns to farmers and more competitive prices to consumers," the minister said Mukherjee added, "FDI would also help promote investment in technology in rural areas."

Planning Commission deputy chairman Montek Singh Ahluwalia criticised the BJP on the ground that it changed its stance after supporting a proposal to allow FDI in retail when it was in power in 2002.

Despite Opposition uproar, retailers back govt on FDI move

"This opposition is bogus. I think this opposition (of FDI in retail) is politically motivated," Ahluwalia said on the sidelines. In an oblique reference to BJP leader Yashwant Sinha, he said that some members of the Opposition have said it was right for them to propose it in 2002 but now the situation has changed.

"Now they are opposing it in 2011 when India is in a much bigger... much stronger position... when the Indian enterprises demonstrated that they can operate abroad," he pointed out. Ahluwalia suggested that opening up of the retail sector for foreign investment will ultimately improve the competitiveness of domestic players.

"In my view, it is absolutely the right thing to do if you care about farmers and consumers. The view that farmers will be cheated by foreign players has no basis," the Planning Commission deputy chairman said.

Courtesy: Mail Today