To run Parliament, Govt puts brake on retail FDI

Amidst the continuing row over allowing FDI in retail, the government on Wednesday succeeded in convincing the Opposition to let Parliament function.

The government and the opposition agreed at an all-party meeting held this morning that Parliament should not be held hostage to continuing logjam over the retail FDI issue.

At the meeting chaired by Finance Minister Pranab Mukherjee, the government told the opposition parties that it was suspending the Cabinet decision on allowing 51 per cent FDI in multi-brand retail and 100 per cent FDI in single brand retail.

Further, Mukherjee will today make a one-line statement in Parliament, announcing the decision to hold back implementation of Cabinet’s retail FDI decision. Both Houses would then adopt a government resolution suspending 51 per cent FDI in retail "till a consensus is developed through consultations with various stakeholders".

Commenting on the agreement, the CPI said this is a "virtual rollback" of the FDI decision.

Opposition parties had earlier been pressing the government on a complete rollback of the decision.

The government had over the last few days reached out to its key ally Trinamool Congress and the opposition to signal its willingness to "pause" the FDI decision.

Finance Minister Pranab Mukherjee Monday spoke to BJP leaders LK Advani and Sushma Swaraj and CPI(M) leader Sitaram Yechury to convey the government's decision to put the FDI decision in abeyance.

The BJP had on Tuesday sharpened its attack on the government with its leader Arun Jaitley questioning "silence" of Congress president Sonia Gandhi and party general secretary Rahul Gandhi on the FDI issue.

"The government decided to allow FDI in retail November 25. Till now, I did not get the opportunity to know the views of the party president (Sonia Gandhi), or general secretary (Rahul Gandhi), whom they consider leader of future," Jaitley said at a rally here.

Nearly half of the Winter Session has been lost due to protests and slogan-shouting by opposition members over various issues, mainly FDI in retail.

'Govt puts retail FDI on hold, to rework policy'

Amid growing opposition to its decision of allowing foreign direct investment (FDI) in retail sector, the UPA government on Monday decided to put the issue on the back burner.

Highly-placed sources told  that the government has decided to halt the implementation of the decision to allow 51% FDI in multi-brand retail and 100% FDI in single-brand retail for now.

An official announcement to this affect will be made in Parliament by Finance Minister Pranab Mukherjee when it meets next on Wednesday, reports said.

Moreover, sources said the government is mulling reworking its policy on allowing FDI in retail, amid opposition from not just the opposition parties but also from its allies - the DMK and the Trinamool Congress.

The development came after Pranab Mukherjee spoke to Leader of Opposition in Lok Sabha, Sushma Swaraj of BJP and CPI(M)’s Sitaram Yechury today.

Mukherjee is reported to have discussed with the two leaders the continuing logjam in Parliament, stressing it was sending a wrong signal to the nation. He is believed to have apprised the two leaders about the government’s decision of putting FDI in retail on hold.

Sources said Yechury told Mukherjee that the Left would not bring a no-confidence motion against the government now.

The decision to allow FDI in retail was taken by the Union Cabinet on November 24. And since the next day the Opposition has not allowed Parliament to function demanding a discussion on the issue under a rule that entails voting.

Following resistance from the opposition as well as its allies, the government had on November 30 delayed issuing notification regarding its decision on allowing FDI in retail.

The government had so far maintained that it was ready for a discussion on the issue in Parliament but not under adjournment motion that entails voting. The UPA had maintained that the decision was an executive one for which the government was not bound to seek approval from Parliament.

Meanwhile, the Congress has issued a whip directing all its MPs to be present in Parliament on Wednesday.

Also on Wednesday, the Congress has called a meeting of its parliamentary board at 9.30 am. That meet will be chaired by Pranab Mukherjee.