The Central Government is contemplating setting up of a committee of senior officials to address the concerns of various stakeholders with regard to opening up of foreign direct investment (FDI) in multi-brand retail and suggest an action plan on the politically sensitive issue.
The Department of Industrial Policy and Promotion (DIPP), under the Ministry of Commerce and Industry, has already been flooded with massive response from global and domestic retail conglomerates, industry bodies, NGOs and farmers associations to its discussion paper pm this issue.
Official sources said the new committee would include representatives from various ministries including the Ministry of Consumer Affairs and Public Distribution, the Commerce and Industry Ministry, the Finance Ministry, the Food Processing Ministry and other departments concerned to give a wider representation to the whole issue.
“The committee will be required to study all the feedback received from various stakeholders so far and try and build some sort of common ground on opening up of FDI retail in the multi-brand format. The objective of the committee will be to give a further impetus to the government's effort to open up the sector in the near future,'' a senior official said.
After the committee firms up the view on the issue, the matter will be sent to the Commerce and Industry Ministry which will then approach the Union Cabinet with a recommendation. At present, foreign companies can operate the single-brand retail format or in the wholesale cash-and-carry business.
Global retail biggies like Carrefour, Walmart and Metro Cash & Carry have asked for a gradual opening of the sector. French retailer Carrefour has advocated that foreign retailers should be allowed to make investment up to 51 per cent, with rights to manage the company to bring about efficiency in the operations and induct the best industry practices. Business chambers like the Federation of Indian Chambers of Commerce and Industry and the Confederation of Indian Industry have stated that the FDI cap should be within the range of 49-51 per cent.
Entities like the Kisan Jagriti Manch, the Bharatiya Mazdoor Sangh and the Swadeshi Jagran Manch have strongly objected to this.
