Retail FDI: All is not well with NCP-Congress

NCP tells Congress not to take it for a ride on retail FDI in Maharashtra

The ruling Nationalist Congress Party (NCP) in Maharashtra has conveyed its co-partner Congress not to take it for a ride on the Centre’s decision to implement 51% foreign direct investment (FDI) in multi-brand retail in the state.

NCP has not only insisted a comprehensive discussion on various issues involved in this regard at the coordination committee meeting but also put up a coordinated stand in order to remove apprehensions among the voters.

NCP has admitted it is an attempt to consolidate its constituency comprising farmers, who are connected with the powerful cooperation sector, and also working class ahead of next assembly elections slated for 2014.

Maharashtra NCP president Madhukar Pichad told Business Standard, "As per the Centre’s move the implementation of FDI in multi brand retail has been left to states and it won’t be imposed on them. There is a coalition government in Maharashtra and we want the issue to be debated at length at the coordination committee. The chief minister needs to clarify what will be its impact on farmers especially on the price they are getting for agricultural produce. Where FDI will be allowed, which regions."

Pichad further said his party would also like to know what will be the fate of labour and employment.

Pichad reiterated that Congress cannot alone take decision on implementation of FDI in multi-brand retail in the state but it will have to NCP on board.

However, state Congress chief Manikrao Thakre downplayed NCP’s move saying that the latter cannot take different stand in the state.

"Already NCP chief and Union Agriculture Minister Sharad Pawar has announced that FDI in multi-brand retail will benefit farmers. There is nothing wrong in NCP’s demand for debate at the coordination committee. I am quite optimistic that issues being raised by NCP will be addressed."

NCP’s move comes at a time when the party’s several ministers including former deputy chief minister Ajit Pawar are under attack for their alleged involvement in various corruption cases and more importantly the opposition has already declared its intent to target NCP in particular during the ensuing winter session of the state legislature starting from December 10 in Nagpur.

NCP’s reservation against the FDI in multi-brand has surprised Congress party. However, Congress said NCP would not rake the boat but give its consent when all its doubts would be cleared at the coordination committee meeting.

Pichad has already sent letter to Chief Minister Prithviraj Chavan demanding an immediate meeting of the coordination committee. The issue was also raised by Ajit Pawar during his meeting with Chavan on late Wednesday night. The timing is also crucial when the Opposition Shiv Sena has decided to bring in a no confidence motion against Congress-NCP alliance government for its alleged failures and flip flops over issues ranging from corruption, drought to deteriorating financial position of the state.

In the 288-member state assembly, Congress has 82 members while NCP’s strength is 62 followed by BJP 47 and Shiv Sena 46. Over 22 independents are supporting the Congress-NCP alliance government.

Meanwhile, Shiv Sena has roared that Wal-Marts and alike would be stopped at the Gateway of India and the party would strongly opposed Maharashtra government's move to implement FDI in multi-brand retail.