| Date: |
06-04-2012 |
| Subject: |
FDI in multi-brand retail on hold, not scrapped: Anand Sharma |
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NEW DELHI: Commerce Minister Anand Sharma has termed the government's decision to put on hold foreign investment in multi-brand retail as "just a pause", saying consensus does not mean unanimity.
The minister also said that a decision on allowing foreign direct investment (FDI) in the civil aviation sector would be taken soon.
Sharma, who was speaking on the sidelines of a function here on Thursday, said that state governments would be free to decide on whether they wanted to open up the multi-brand retail sector to foreign investors and that their decision would have to be conveyed to the Centre soon.
"There are states that want it. There are states that have reservations. Let us leave it to the states that want it, and good luck to those who may not ... consensus cannot be confused with unanimity, that will be a mistake," Sharma said.
The move is part of renewed efforts by the Department of Industrial Policy and Promotion (DIPP) to hasten consensus building on the issue after widespread protests last year forced the government to roll back its decision to allow 51% FDI in multi-brand retail. The DIPP is the government department that frames policy on FDI.
Since then, the government has held consultations with all stakeholders, including traders and farmers, in a bid to renew the process.
On FDI in aviation, Sharma said, "This has been discussed with the finance minister, civil aviation minister and myself, and an appropriate view and decision will be taken very soon."
In January, the government proposed allowing foreign airlines to pick up 49% stake in Indian carriers. However, no consensus could be reached on the FDI cap in the inter-ministerial consultations that followed.
The aviation ministry had initially suggested a cap at 24% while the DIPP sought 26%. A Committee of Secretaries has proposed 49% cap.
Sharma on Thursday also directed Cotton Corporation of India to buy 15,000 bales per day at Rs 4,400 per quintal in Gujarat.
Source : economictimes.indiatimes.com
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