The Government now claims that eight States and two Union territories have expressed their support for foreign direct investment (FDI) in multi-brand retail.
This development comes five days after the Government stated in Parliament that it had written commitment from only two States and two Union Territories. On August 8, the Centre had also disclosed that it had not prepared any roadmap for the introduction of 100 per cent FDI in multi-brand retail.
Minister of State for Commerce and Industry Jyotiraditya M. Scindia said in a written reply in Lok Sabha on Monday that, “The States of Delhi and Manipur and the Union Territories of Daman and Diu as well as Dadra and Nagar Haveli have expressed support for the policy in writing.”
However, this time he added that, “The Chief Ministers of Maharashtra, Assam, Haryana, Uttarakhand, Andhra Pradesh and Jammu and Kashmir, through their press statements, have publicly endorsed the policy and asked for its implementation.”
The Government’s flip-flop on the number of States in support of FDI in retail began with Commerce and Industry Minister Anand Sharma claiming on June 27 that the Government had received written commitment from seven States – Andhra Pradesh, Assam, Delhi, Haryana, Kerala, Maharashtra and Rajasthan (all Congress-ruled States), – and Punjab was expected to give a similar commitment soon.
However, on July 3, Kerala Chief Minister Oommen Chandy said the State was not ready for FDI in retail “at this stage”.
Then, on August 8, in a written reply, Scindia told Rajya Sabha that the Department of Industrial Policy and Promotion had on June 19 written to all the States and Union Territories seeking their response.
“Till date, written communications indicating support for FDI in multi-brand retail trade have been received from the Governments of Delhi, Manipur, and from the Union Territories of Daman and Diu as well as Dadra and Nagar Haveli,” he added.
A day after, Sharma claimed that an error had crept into the Junior Minister’s reply and that Parliament shall be informed about the discrepancy as well as the “correct” position.
Finally, in his statement on Monday, Scindia revealed the names of other States that had “endorsed” the proposal. However, he said a decision had been suspended to evolve a broader consensus among the various stakeholders.
The Centre has been trying to evolve a consensus by holding consultations with all stakeholders, including the States, which have to take a call on granting trade licences to companies for opening stores.
Apart from UPA-ally Trinamool Congress and Congress-ruled Kerala, Opposition parties, including the BJP and Left, have opposed FDI in multi-brand retail.