After talking to Pranab Mukherjee on phone, TMC chief Mamata Banerjee announced in Kolkata that the Centre was putting the policy in abeyance.

Fearful of an adjournment motion without sufficient numerical support in the two Houses of Parliament, the government on Saturday had to concede significant political ground to allies and the Opposition and confessed it had put in abeyance the policy to allow Foreign Direct Investment (FDI) in the retail sector.

The coup de grace came from West Bengal chief minister Mamata Banerjee who announced in Kolkata that the central government had told her it was suspending the implementation of 51 per cent foreign direct investment (FDI) in multi-brand retail.

Banerjee said she had spoken twice on the phone with Union Finance Minister Pranab Mukherjee who told her of the Centre’s call to keep in abeyance the decision on FDI in retail until a consensus was evolved. “Pranab Mukherjee is in Kolkata on Saturday. He wanted to meet me but I had other commitments. We spoke twice on the phone and he told me the retail issue is being suspended until consensus is evolved”, she said in a media briefing at the Writers’ Building.

Reacting to her announcement, top ministers said FDI in retail had been ‘held back”. “Holding back doesn’t mean rolling back” said a union minister. He said it was essential for optics that Banerjee announce the government’s decision, but said all parties needed to have an open mind on the issue.

Banerjee’s Trinamool Congress (TMC) is the second largest ally in the UPA coalition. TMC has 18 Members of Parliament (MPs) in the Lok Sabha, second only to Congress, which has 207 MPs.

Banerjee was vocal in her opposition to the FDI move from the beginning and had been exerting pressure on the Congress. For more visit: Business Standard

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