Govt to soften allies on FDI in retail, aviation: Sources.

The government is getting ready to give a fresh push to FDI in multi-brand retail and allowing foreign airlines to pick up stake in Indian carriers. While the decision to allow multi-brand retail FDI was put on hold, the proposal on FDI in aviation is yet to be taken up by the Cabinet.

Now the government plans to implement measures on both proposals, reports CNBC-TV18's  Rituparna Bhuyan.

According to highly-placed sources, the government is going to start parleys with various political parties including allies, on both FDI proposals. The objective is to ensure that both these proposals turn into policies before the start of the monsoon session of the Parliament.

The Trinamool Congress and the Samajwadi Party  are sensitive on the implementation of FDI. The Trinamool Congress has publicly voiced its objection against FDI in aviation.

Sources add that Union commerce minister Anand Sharma will meet chief ministers of North India in Chandigarh next week and communicate that the ultimately it is left to the state-governments to decide on allowing FDI-funded retail stores in their respective states.

On FDI in aviation, Union aviation minister Ajit Singh will begin talks with allies including the Trinamool Congress. The Cabinet notice is already out on this particular proposal, but the government does not want to take any chances.

As far as the timelines are concerned, sources say that there will be more clarity on exactly when these proposals will be taken up by the Cabinet once the President's election is over by the end of June.

Source : moneycontrol.com