Mncs Block Approval For Thapar Report
The multinationals have been able to prevent the Associated Chambers of Commerce and Industry management committee from endorsing the LM Thapar committee report at the managements meeting on Thursday in Chennai.
The report had irked the multinational members in the Assocham fold since it sought to place a 40 per cent equity cap on foreign companies in the consumer goods sector and recommended phased divestment of stake by the 100 per cent MNCs to prescribed levels.
The chambers management committee meeting in Chennai was scheduled to deliberate on the report and finally adopt it. The report, however, in a way had lost its significance since the government had already spelt out its policy on foreign direct investment recently.
But for the Assocham members the Thapar report was still important since it signalled the direction the chamber was taking whether it still supported the MNC interests in the country or sought greater protection for the domestic industry.
Assocham has always stood by the concerns of but the sudden change in its stance last month was met with an outpour of criticism and dismay by the influential multinational giants in the chamber.
Sources said here yesterday the management committee did not accept the report but merely noted it. They said the management committee was not unanimous on the recommendations of the report. The Assocham president H L Somany, however, is reported to have stated in a news conference on Thursday that there was no dissent on the report.
Let H L Somany give it in writing and we shall respond then, an MNC representative on the Assocham management committee said yesterday.
Earlier, on the eve of the chambers meeting on Wednesday, L M Thapar told Business Standard that the report has become redundant now since the government has already announced its policy on foreign investment. He is believed to have told the same thing to the agitated MNC members at the management committee meeting on Thursday.
Assocham had submitted the L M Thapar report to the government even before it was ratified by its management committee. Sources said the multinationals criticised the chambers office bearers during the meeting for superseding the management committee.
Assocham president H L Somany was not available for comments yesterday and attempts to reach him at Hyderabad proved futile. But he went on record earlier that the report was submitted to the government in a hurry since there was no time to pass it through the management committee.