Kolkata/New Delhi, December 2 (NDTV): The government is considering putting on hold a possible vote on its decision to allow 51% foreign ownership of multi-brand retail stores. Sources tell NDTV that the Congress-led UPA is not keen to test its strength on the floor of the House on this issue. A final decision in this regard is likely to be taken on Wednesday.
The government’s decision may also partly be based on key-ally Mamata Banerjee refusing to support the move. Ms Banerjee told the Prime Minister today that her party cannot support the government’s move on FDI. The West Bengal Chief Minister, who has 18 Lok Sabha MPs, said, “I don’t want the government to be toppled on this issue. This is a very sensitive issue. But at the same time, it is not possible for us to support FDI (Foreign Direct Investment) entry into retail sector. I am sorry.” Ms Banerjee said that she conveyed this on the phone to the PM and that she pointed out that her party’s manifesto clearly articulates its stand against FDI.
The PM and other senior ministers have stressed that individual states can choose to adopt the new policy or ignore it. Commerce Minister Anand Sharma told NDTV that flexibility was included “in deference” to Ms Banerjee’s point of view.
If her party, the Trinamool Congress, does not vote with the government, it could lose the crucial vote. If she abstains, the government will have a wafer-thin majority, leading to a serious loss of credibility.
The Opposition has refused to let Parliament function unless the government agrees to a debate and vote on its reforms in retail. After trying to negotiate the text of the adjournment motion that would be voted on, the government now seems to be leaning away from a vote. “It is an Executive decision. And it is enabling policy framework that does not require, even remotely, any legislative change or tweaking,” said the Commerce Minister. “Parliament is supreme, but it’s only when it comes to legislation... what the Cabinet has done is the prerogative of the Executive of the Government of the day.”
The government’s decision may also partly be based on key-ally Mamata Banerjee refusing to support the move. Ms Banerjee told the Prime Minister today that her party cannot support the government’s move on FDI. The West Bengal Chief Minister, who has 18 Lok Sabha MPs, said, “I don’t want the government to be toppled on this issue. This is a very sensitive issue. But at the same time, it is not possible for us to support FDI (Foreign Direct Investment) entry into retail sector. I am sorry.” Ms Banerjee said that she conveyed this on the phone to the PM and that she pointed out that her party’s manifesto clearly articulates its stand against FDI.
The PM and other senior ministers have stressed that individual states can choose to adopt the new policy or ignore it. Commerce Minister Anand Sharma told NDTV that flexibility was included “in deference” to Ms Banerjee’s point of view.
If her party, the Trinamool Congress, does not vote with the government, it could lose the crucial vote. If she abstains, the government will have a wafer-thin majority, leading to a serious loss of credibility.
The Opposition has refused to let Parliament function unless the government agrees to a debate and vote on its reforms in retail. After trying to negotiate the text of the adjournment motion that would be voted on, the government now seems to be leaning away from a vote. “It is an Executive decision. And it is enabling policy framework that does not require, even remotely, any legislative change or tweaking,” said the Commerce Minister. “Parliament is supreme, but it’s only when it comes to legislation... what the Cabinet has done is the prerogative of the Executive of the Government of the day.”
