DMK, PMK to take up entry of players into retail
Tamil Nadu chief minister and DMK chief M Karunanidhi has indicated that DMK and PMK ministers at the Centre could raise objections on the issue within the Cabinet.
By TNN |
NEW DELHI: In a development that could complicate entry of big corporate players into the retail trade, Tamil Nadu chief minister and DMK chief M Karunanidhi has indicated that DMK and PMK ministers at the Centre could raise objections on the issue within the Cabinet.
The DMK’s stand not only adds muscle to the Left’s campaign against the entry of MNC retailers such as Wal-Mart into India, but it also represents opposition to the move from a section within the government.
Replying to PMK member Velmurugan in the Tamil Nadu assembly, who asked that corporates be kept out of retail trade in the state, Mr Karunanidhi said the state government did not have power to take action in the matter as the decision was taken by the Centre. However, he also added that DMK and PMK members could take up the issue in the Cabinet.
India allows 100% FDI in the cash-and-carry business through the automatic route. Players such as Wal-Mart are also tying up with Indian corporates such as Bharti Enterprises to provide back-end support for their retail ventures. The move has drawn flak from the Left which contends that MNC biggies are using this route to gain a ‘backdoor’ entry into the retail business in India.
India does not allow FDI in multi-brand retail, though the government has allowed 51% FDI in single-brand retail. The Left has opposed FDI in retail on the grounds that it would affect the small and marginal shop owners the most and lead to massive unemployment. The PMK has now taken a similar line.
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Raising the issue in the TN assembly, Mr Velumurugan claimed that about one crore people in Tamil Nadu would lose their jobs if corporates entered the retail trade. The DMK’s apparent backing of this stand could aggravate the debate surrounding the entry of Wal-Mart, Carrefour, Tesco and other multinational supermarket chains into India.PMK member also said his party was opposed to setting up of SEZ and the provision of concessions in income tax, infrastructure and land allotment to investors. Mr Velumurugan held that the setting up of SEZs would lead to environmental hazards apart from affecting farmers who would lose their cultivable lands.
According to him, SEZ would function as “isolated lands” in India as some laws would not be applicable in these areas. He held that the setting up of SEZs would lead to marginalisation of local people, especially the oppressed classes, as they would not be given employment in the units.
He alleged that people from other states were getting jobs in the newly set up industries and added there should a law for granting local people employment in the industrial units.
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