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LATEST NEWS UPDATES | Opposition parties unrelenting over retail FDI issue

Opposition parties unrelenting over retail FDI issue

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published Published on Nov 30, 2011   modified Modified on Nov 30, 2011
-The Hindu
 
In a bid to break the impasse over foreign direct investment (FDI) in multi-brand retail, the government made a vain attempt on Wednesday night to persuade the Opposition to tone down the wording of its motion. But it was told in categorical terms that the demand for a rollback of the decision was non-negotiable.

The Opposition stance was conveyed by the Working President of the National Democratic Alliance (NDA) and senior Bharatiya Janata Party leader L.K. Advani when the United Progressive Alliance (UPA) trouble-shooter and Finance Minister Pranab Mukherjee approached him with the proposal.

The compromise formula mooted by the government is akin to the agreement on two separate motions by the Left and the BJP on price rise and black money. Initially, the Opposition had insisted on a discussion under the rule which entailed voting. However, the government prevailed on the Left to agree to a debate on price rise without voting and influenced the BJP to rephrase its motion confining it to generalities rather than a censure of the government on black money. On the FDI issue, the Opposition leaders have been insisting that they would not agree to anything less than withdrawal of the Cabinet decision.

The contact between Mr. Mukheree and Mr. Advani came after a long wait by the Opposition for a response from the government to its demand to either withdraw its decision to throw open the retail multi-brand sector to foreign players or agree to put it to vote in the Lok Sabha.

The long silence on the part of the government is seen by the Opposition as a sign that it is looking at various options including a ‘yes' to an adjournment motion which entails voting. It is also seen as an indication of unease at not getting the numbers right, given the opposition to the FDI move from UPA constituents like the TMC and the DMK.

The NDA and the BJP have had its quota of embarrassment over FDI in the retail sector in the last three days. To begin with, the Akali Dal wholeheartedly welcomed the UPA policy shift. Sources said that to paper over the cracks, senior BJP leaders got into the act and secured a commitment from the Akali leaders that in the event of a motion, the party, as a traditional political rival of the Congress, would vote against the government.

Even before the Akali issue was resolved, the NDA leaders discovered much to their discomfort that in its 2004 poll-eve manifesto the Alliance had committed itself to allowing 26 per cent FDI in organised retail trade. “Sourcing of Indian products by foreign retail chains will be encouraged,” the document had said. It had further promised to revisit the FDI limit in the insurance sector that was thrown open to foreign companies during the tenure of Prime Minister Atal Behari Vajpayee.

The BJP leaders have tied themselves in knots in the last two days in explaining what the Congress has termed “opportunistic” posturing by the party. Leader of the Opposition Arun Jaitley conceded that his party had endorsed the FDI in retail in 2004, but “re-examined” its position in 2009. He cited the 2009 party election manifesto categorically ruling out FDI in multi-brand retail.

At a news conference here, senior BJP leader Murli Manohar Joshi charged that the decision to allow 51 per cent FDI in multi-brand retail was taken in deference to the wishes of the U.S., the U.K. and France. “When Finance Minister Pranab Mukherjee went to Washington in June, U.S. Treasury Secretary Timothy Geithner said he wanted to see progress in reforms in banking, insurance and multi-brand retail.” He said the U.K. and France had expressed similar sentiments.

* Demand for rollback of decision to allow FDI in retail non-negotiable: Opposition

* Advani conveys Opposition stance to Pranab

The Hindu, 1 December, 2011, http://www.thehindu.com/todays-paper/article2676209.ece


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