Uttar Pradesh, BJP states not to implement FDI in retail; J&K,Congress states back Centre

NEW DELHI: Uttar Pradesh and BJP-ruled states today said they will not implement FDI in multi-brand retail which got the support of states like Jammu and Kashmir and Assam where Congress and allies are in power.

As the stand taken by state governments on executing Centre's decision yesterday to allow 51 per cent FDI in retail went along party lines, the BJD government in Odisha said it would examine the matter.

BSP also joined the BJP in opposing the FDI decision while the RJD backed the Centre.

BJP spokesperson Jagat Prakash Nadda said all states in which the party is in power are unanimous in their opposition to FDI in multi-brand retail.

The parties and alliances ruling in 11 major states including Gujarat, Uttar Pradesh and West Bengal have opposed the Centre's decision which has also been opposed by the AIADMK government in Tamil Nadu.

If one went by the 2011 Census data, there are 37 cities with more than one million population in 11 states ruled by the parties opposed to the decision.

States which have supported the Centre's decision include Maharashtra, Delhi, Jammu and Kashmir, Haryana, Rajasthan, Uttarakhand, Andhra Pradesh and Assam--all ruled by UPA.

These states have 19 cities like Delhi, Mumbai, Pune, Nagpur, Jaipur, Hyderabad, Vijaywada and Srinagar with more than one million population.

As per the FDI policy approved by the Cabinet, the final authority for granting the trade licence rests with the states under their respective Shops and Establishment Acts. Also, Foreign retailers will only be allowed to set up shop in cities with a population of more than one million.

A day after giving a 72-hour deadline to the Centre to roll back its FDI decision and diesel price hike, West Bengal Chief Minister Mamata Banerjee said reforms did not mean "selling out everything".

"I do not support any decision to sell out everything. This might suit one section of the government," she said.

"Samajwadi Party's view is very clear on the FDI issue and it will not implement it in Uttar Pradesh," UP Chief Minister Yadav said in Lucknow.