Narendra Modi, Prem Kumar Dhumal never favoured FDI in retail, clarifies BJP

NEW DELHI: BJP has denied commerce minister Anand Sharma's claim that BJP-ruled Gujarat and Himachal Pradesh had told a parliamentary panel recently that they wanted foreign direct investment in retail. The party put the onus for breaking the parliamentary deadlock squarely on the government.

Stung by Sharma's remarks, BJP, stalling Parliament over government's decision to allow FDI in multi-retail, fielded senior leader Shanta Kumar, who heads the standing committee on commerce, to deny the minister's claim.

"I spoke to Gujarat chief minister Narendra Modi and his Himachal counterpart Prem Kumar Dhumal this morning. Both said they were against the proposal and would fight it tooth and nail," Kumar said at a press conference in the Capital on Friday afternoon.

BJP, which has been unrelenting in its demand for a rollback of the decision to allow FDI in multi-brand retail or allow an adjournment motion, was under fire from the government for indulging in "petty politics" over the issue. Kumar, a former Himachal Pradesh chief minister, said that as many as 19 states, including Gujarat had conveyed to the panel that they were in principle opposed to FDI in retail.

However, Himachal Pradesh was not among them. His party has said that BJP-ruled states were not bound to follow the government norms on allowing FDI in multibrand retail trading and easing those in single-brand retail. The previous committee, headed by BJP leader Murli Manohar Joshi had rejected FDI in retail in 2009 saying, "not only foreign, but even domestic corporates in certain sectors should be banned completely."

The new committee, headed by Kumar, was looking into the ATR on its 2009 recommendations. "When a parliamentary committee has opposed it and another was examining FDI in retail, then what was the hurry to take a decision on FDI in retail," Kumar asked.

He said the panel had got the Action Taken Report in June, four months after it had put in a request, and had sought all details on the issue from the concerned department. He alleged the government's attitude amounted to undermining the standing committee, which was considered to be a 'mini-Parliament.'

He also alleged that the Cabinet decision to allow 51% FDI in multi-brand retail was the result of "Walmart spending Rs 60 crore for lobbying" in the country. Kumar put the onus for 'running Parliament' on the government.