The Opposition Bharatiya Janata Party (BJP) has decided if the government informs it at an all-party meeting at 9.30 am tomorrow the new retail FDI policy is in abeyance, the party will not demand an explicit assurance of a rollback and will facilitate a discussion in Parliament. Sources familiar with the developments said the government would make a last-ditch attempt to salvage the policy by offering up to 49 per cent FDI in multi-brand retail.
BJP leaders say everything will depend on how the government’s assurance is worded. “Let us be quite clear. The government’s own allies were not on board on FDI in retail. So, we also attacked the government. Now if it is saying it will not move on the decision without a discussion, we will not obstruct the House,” said a top BJP leader.
WHERE THEY STAND NOW
BJP: If we’re convinced the government is sincere about creating a consensus, we'll cooperate in running the House
Trinamool Congress: We have made our point. We should now lie low for a while
CPI(M): We are opposed to FDI in retail but don’t endorse disruption of the House
Trinamool Congress (TMC) leaders said as they had proved they had veto power on government decisions, they would not labour the point. “As long as the government sticks to what Pranab babu told Mamata Banerjee, that FDI will be kept in abeyance till a consensus is reached, we are okay. If it is not so, then we are back to square one,” said Dinesh Trivedi, TMC member and the Union minister for railways.
TMC chief Mamata Banerjee is also learnt to have conveyed to party colleagues not to make too much of the party’s opposition to other legislation, including the Pension Fund Regulatory and Development Authority Bill or crucial reform legislation in the education sector.
That assures an element of tranquility during what remains of the Winter session.
Meanwhile, the government kept its powder dry. A top official from the ministry of commerce and industry told Business Standard, “The ministry is not going back to the Cabinet,” indicating the proposal to allow 51 per cent FDI in retail would not be withdrawn. Later, after discussion, FDI caps may be tweaked as part of the negotiation process.
A final decision to reduce the cap from the 51 per cent cleared by the Cabinet 10 days ago will be taken after the government senses the mood of its allies and the Opposition. The decision to raise FDI in single-brand retail to 100 per cent may remain untouched.
A person close to the development said, “This is not a rollback or even a holding back.” According to him, the government is buying time to create an environment for the second wave of reforms.
Indications are after the winter session is over, UPA chairman Sonia Gandhi will hold a meeting of allies for consensus on the issue. That would be preceded by talks with leaders such as Mamata Banerjee.
Apropos of the statement (As long as the government sticks to what Pranab babu told Mamata Banerjee, that FDI will be kept in abeyance till a consensus is reached.), hat off to Didi. Incidentally, Amma may seek for tips from her as how to amicably resolve the Mullaperiyar dam imbroglio.
Content Guide
Calm will return to Parliament tomorrow but at the cost of foreign direct investment (FDI) in multi-brand retail, at least temporarily.
