The government has decided to hold back FDI in retail till a consensus is reached among political parties. This decision now ends the stand-off between the government and the opposition, which caused a paralysis of Parliament.
The government has decided to put the FDI on retail move on hold till a consensus has been reached among the country's political parties.
The decision could now end the nine-day logjam in Parliament over the issue.
Last Friday, the government had said while there would be no rollback of Foreign Direct Investment in multi-brand retail, it might use the four-day parliamentary holiday to hold further consultations with its allies starting Saturday.
Also, Prime Minister Manmohan Singh spoke to West Bengal Chief Minister (and Trinamul Congress chief) Mamata Banerjee on Friday, seeking her support, which was not forthcoming.
She, however, assured him that her party would do nothing to destabilise the government.
Speaking to reporters in Kolkata, Mamata said, “I told him (the Prime Minister) respectfully that we don’t want the government to be toppled...It’s a very sensitive issue...at the same time, it’s not possible for us to (allow) FDI in retail. I am sorry.”
A section of the Congress was also contemplating sine die adjournment of both Houses if the impasse was not resolved by December 7. But there were not too many takers as it is felt this would show the government in a poor light.
It is learnt, meanwhile, that all central trade unions, including Intuc, will call a nationwide bandh against FDI in retail on February 28, the day before next year's Union Budget.