Top leaders in the government say rollback of retail FDI is inconceivable’.
As a worried government called for an all party meeting, scrambling to save the winter session of Parliament from being washed away by the tsunami of protest against FDI in retail, the Congress party announced it solidly behind the government, ruling out any rollback.
An adamant Opposition said nothing short of a reversal of the liberalisation move would be acceptable. Today, the Biju Janata Dal (BJD), which had not made its position clear earlier, also jumped on the Opposition bandwagon swelling further the numbers of those opposed to FDI in retail.
An all party meeting is scheduled tomorrow that Prime Minister Manmohan Singh and Finance Minister Pranab Mukherjee will host. While today the mood of the Opposition was that reversal of FDI is non-negotiable, government managers feel they may be able to persuade the Opposition to accept a discussion of FDI in retail under a voting rule but worded in such a way that it involves no censure of the government.
But as a CPIM leader said, that depends on the way the government conducts itself in the all party meeting tomorrow. BJP leader Sushma Swaraj gave the government till midnight to change its policy or face protest in Parliament for an indefinite period.
In the course of the day, Congress president Sonia Gandhi met Prime Minister Manmohan Singh. A meeting of the Congress core committee took place later in the evening. Congress members conceded that the party was split down the middle on FDI in retail. But soon after the core committee meeting, top leaders in the government said a rollback was inconceivable, indicating clearly that the Sonia Gandhi touch had stilled a ship that had threatened to run aground.
The Opposition was equally determined. “If the government rolls back this decision, Parliament will start running from tomorrow. We are not disruptionist. We want Parliament to function. But the government has to take our views into account,” said leader of Opposition in Lok Sabha, Sushma Swaraj.
The government did its best to hardsell the benefits of the move. Commerce minister Anand Sharma wrote a letter to all Opposition MPs explaining that FDI in retail was a model with an Indian imprint, “recognising the complexity of Indian society and the competing demands of different stakeholder”.
A clarification that 30 per cent of procurement by retail traders would have to be done from local SMEs was all the tweaking government sources said would be done.
Top finance ministry sources said the move had shown it had endorsement from the markets and trade: within two days of the announcement, not only was the Sensex up 400 points but also the Rupee had appreciated by 24 paise. “Admittedly the (Rupee) appreciation is small. But with no change in the European market, it is clear that this announcement has galvanised the world into looking at India again” said the sources.
Finance minister Pranab Mukherjee told Business Standard: “There is no compulsion on anyone. Those states that do not want FDI in retail have full right not to give permission. What we have cleared are only enabling provisions”.
Sources close to the minister said he had staked a lot on opening up retail to FDI. If this was reversed the consequences could be unpredictable.
It appears that the parliamentary logjam will continue tomorrow too, with neither side ready to yield just yet.
Disruption might continue till December 1, the day traders are going to observe an all India bandh against the move. “This is a big block” admitted sources in the ministry of parliamentary affairs.
Parliamentary Research Service (PRS) said the current 15th Lok Sabha had produced the fewest working hours since 1985.
