February 10th, 2012
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Kerala opposes FDI in multi brand retail sector

Kerala Chief minister Oommen chandy Thiruvananthapuram: The centre may not have a smooth ride with the implementation of FDI in retail sector. UDF government in Kerala has put their foot down and said a defiant ‘no’ to the introduction of 51 percent FDI in multi- brand retail sector.

“We will not implement it (FDI in retail). We have already conveyed our stand (to the Centre) that we cannot agree with it. It is not in the interests of Kerala,” Chief Minister Oommen Chandy told reporters. Justifying the state’s decision, he pointed out that implementation of the Centre’s decision had been left to individual states.

The proposed FDI policy currently has no support in the states ruled by the opposition government. With Mr Chandy too joining naysayers, global players such as Walmart, Tesco and Carrefour will not be able to open shop in 33 of the 53 cities that have been thrown open to them. State governments have a key role to play in allowing FDI in retail as under the Shops and Establishments Act, retail traders will have to get the state governments’ permission to launch their operations.

The Congress till date has been blaming the Opposition for the lockjam in the implementation of the policy. This could not be considered to be completely true as Congress allies like Mamata Banerjee and Samajwadi Party are also averse to this ambitious policy.


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