UPA coordination meeting on retail, aviation FDI today

NEW DELHI: With the Opposition determined to stall Parliament and a phase of legislative paralysis looking real, the government leadership is now banking on Wednesday's UPA meeting to push forward pending administrative decisions on the FDI front.

The UPA coordination meeting is significant as it will be attended by Trinamool Congress chief Mamata Banerjee, who has been placing hurdles before FDI decisions. "We expect her not play an obstructionist role at the meeting," a Congress leader, who did not wish to be identified, said. Defence minister AK Antony, who met Banerjee last Saturday, had sought her backing for the long-pending reform measures.

The Congress leader quoted earlier said Trinamool could go with the UPA government's suggestion for leaving execution of allowing 52% FDI in multi-brand retail to state governments. Government managers are expected to make an aggressive pitch for allowing FDI in the aviation sector too at the Wednesday meeting. But in a development that could make things difficult for the government, newly-appointed minister for micro, small and medium enterprises, Vayalar Ravi, said Swedish furniture maker IKEA will not be permitted relaxation in rules for FDI in single-brand retail if it affects interest of domestic small and tiny units.

"Any relaxation which they demand, if it affects my people and industry, I won't accept," Ravi said after taking charge of the department. Ravi, who is also Minister For Overseas Indian Affairs, said the Department of Industrial Policy and Promotion should not allow any relaxation to IKEA, which has a bearing on the MSME sector without consulting his ministry. "They cannot do it without my consent," he said. Ravi told reporters that FDI was welcome but not at the cost of artisans.