Congress-ruled states to support retail FDI

The Centre is moving ahead with the push to break the policy paralysis and is getting support from Congress-ruled states on Foreign Direct Investment (FDI) in retail. Congress-ruled sates are in favour of FDI in retail and will go ahead with it, sources have told CNN-IBN.

Commerce Minister Anand Sharma will call a meeting some time next week with all stake holders including farmers, experts and the chief ministers of all the states. Sharma will also speak to the chief ministers of Uttar Pradesh, Punjab and West Bengal.

West Bengal Chief Minister and Trinamool Congress President Mamata Banerjee has been a vociferous opponent of FDI in retail. Although the Cabinet approved 51 per cent FDI in retail on November 24, 2011 but the government was forced to put it on hold in the face of strong opposition from Mamata.

There is a strong voice within the Central Government which wants to bring FDI in retail before Parliament's Monsoon Session.

Keen to push FDI in various sectors the Finance Ministry has already put up the final Cabinet note on Insurance and Pension bills, proposing 49 per cent foreign direct investment (FDI) in both sectors.

According to government sources, the Finance Ministry, under Prime Minister Manmohan Singh is planning to introduce both the bills in the Monsoon Session of Parliament. Sources further said that a political call on the FDI cap is likely to be taken soon.