Tuesday, 4 December 2012

BJP says government gone back on promise on FDI

 The government had promised a decision on foreign investment in retail after consensus but had gone back on its promise, Bharatiya Janata Party (BJP) leader Sushma Swaraj said Tuesday while initiating the debate on the issue in the Lok Sabha.

The leader of opposition said the government claims that foreign direct investment (FDI) in multi-brand retail would benefit farmers but this was not proven by international experience.

"The government has gone back on its promise of holding consultation with all stakeholders before allowing FDI in retail. It is sad that no effort was made to make a political consensus and no meeting or any consultation was held with even the main opposition party," she said. 

"International experience shows that retailers do predatory pricing and they will reduce the prices so that the other shops get shut and when the market is over, they will increase the prices and then consumers will have no choice but to buy at high prices," she said. 

To end a deadlock that has paralysed the functioning of both the houses of Parliament, the government bowed to intense Opposition pressure and agreed to a vote on its decision to allow foreign direct investment in multi-brand retail in the country.

The UPA government said it was confident of its numbers in the Lok Sabha, a day ahead of the crucial debate - with voting - in the house on FDI in retail and urged all parties to reject the politics behind the issue.

While the debate in the Lok Sabha will be held under Rule 184, in the Rajya Sabha it will be held under Rule 168 - both entailing vote, said government sources.

Though the government is now confident of sailing through in the Lower House, it does not have the required numbers in the Upper House.

The role of the Samajwadi Party and the Bahujan Samaj Party, which support the Congress-led United Progressive Alliance government from the outside, would be crucial in the Rajya Sabha.

Of the total 245 members in the Rajya Sabha, the UPA has a numerical strength of 90. With 27 outside supporters from the BSP, SP, Lok Janshakti Party and the Rashtriya Janata Dal, the government tally stands at 117 as against the magical 123-figure for majority.

The Bharatiya Janata Party and the Left parties have already made their stance on FDI in retail clear: they will vote against the government on this issue.

The opposition claims the support of 110 members. Besides, there are seven independents, five members from smaller parties and 10 nominated.

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