FDI in retail: Govt approves Rs 8,750-cr financial package for West Bengal

NEW DELHI: After heeding to West Bengal Chief Minister Mamata Banerjee's demand on FDI in retail, the Centre today gifted her with a special package of Rs 8,750 crore for development of backward region of the state.

The proposal of the Planning Commission, which was being sought by Banerjee for long, was cleared by the Union Cabinet this evening.

The package is proposed to be implemented in the state's backward areas affected by naxalism, including Jungle Mahal area which comprises West Midnapore, Purulia and Bankura.

The package is expected to cover aspects like rural employment, safe drinking water, watershed and rural road construction.

Rural Development Minister Jairam Ramesh had recently toured such areas to assess the requirement for funds.

Ramesh had later said that he had discussed with Banerjee how to use rural development programmes effectively in the Jungle Mahal to fight Maoist forces.

Significantly, the package was cleared on a day when the central government announced suspension of its decision to allow 51 per cent FDI in multi-brand retail.

Banerjee, whose Trinamool Congress is a key constituent of the ruling UPA, had been opposing the FDI decision and demanding that it be put on hold.

The state has been facing financial crunch as its debt stock, according to the state finances report of the Reserve Bank, was Rs 1.9 lakh crore.