Opposition calls for withdrawal of FDI in retail; discussion to continue in LS today

New Delhi, Dec 5: The Opposition on Tuesday made a strong plea to immediately withdraw the proposal to allow 51 percent Foreign Direct investment in multi-brand retail while the Government however justified the proposal saying states are not bound to implement it.

Criticising the government for allowing FDI in retail, Opposition asked it to withdraw the decision in national interest saying it would render retailers jobless, impoverish farmers and hurt consumers. Voting will take place on Wednesday.

Initiating the debate on the issue, Leader of the Opposition Sushma Swaraj contended that Prime Minister

Manmohan Singh, as Leader of the Opposition in Rajya Sabha in 2002, had opposed FDI in retail and questioned as to what has changed that the government is so determined to implement it.

Appealing to parties like SP and BSP to support the motion moved by her and Khagen Das (CPI-M) against 51 per cent FDI in multi-brand retail, Swaraj said any defeat during vote will not bring down the government but will force it to rollback the decision on FDI.

In her nearly 90-minute speech, Swaraj maintained that the concept of large supermarkets has failed in Western economies. She however asserted that BJP was not opposed to FDI per se.

Participating in the debate Telecom Minister Kapil Sibal pointed out that any company intending to start a business in the sector will have to invest a minimum of 100 million dollars and out of this 50 million will be for creating infrastructure. He also said that there is no compulsion for implementing FDI in retail and States are free to decide on it.

Opposing the Government's decision, Samajwadi Party Chief Mulayam Singh Yadav said that FDI in retail is not in the country's interest. He said that it will result in more unemployment.

BSP leader Dara Singh Chauhan said that Government should not take any decision in this regard in a hurry. He added that the Government should first review the impact of FDI in retail in Congress ruled States .

Earlier, BJP and Left parties demanded separate debates with voting on FDI in retail and related amendments in Foreign Exchange Management Act (FEMA) rules in Lok Sabha.

The demand for separate discussion and voting was raised by BJP leader Yashwant Sinha and supported by CPI-M leader Basudeb Acharia and Gurudas Dasgupta of CPI.

But, Parliamentary Affairs Minister Kamal Nath and Home Minister Sushilkumar Shinde, who is Leader of the House, opposed the demand.

After considering the two views, the Speaker ruled that the debate on FDI and FEMA will be held together after which vote can take place separately on Wednesday.

Trinamool Congress leader Kalyan Banerjee said that his party will vote against the FDI in retail issue.

Earlier, both BJP and Congress issued three-line whips to their MPs to be present in the House and vote according to their party stand.

While Congress is making all out efforts to bring UPA constituents and outside supporters on board, the entire BJP-led NDA and Left are united in opposing the FDI decision.

The AIADMK, BJD, AGP and some other parties are also opposing the FDI.

Former UPA ally TMC has also adopted a tough stand against the government.

At present, the government enjoys the support of around 265 MPs, including 18 of DMK who have agreed to support it, in the 545-member Lok Sabha.

Samajwadi Party with 22 and BSP with 21 members have kept the government guessing about which way they will go in the event of a vote.

Earlier, Parliamentary Affairs Minister Kamal Nath expressed confidence that the motion against FDI will be defeated in Parliament and hoped that parties will see through the "politics" of BJP and vote accordingly.