Pranab told me Centre has decided to put FDI on hold: Mamata

Mtoday news / PTI

Kolkata, Dec 3:  West Bengal Chief Minister Mamata Banerjee took the nation by surprise on Saturday when, quoting Finance Minister Pranab Mukherjee, she said that Foreign Direct Investment in retail has been suspended.

"Pranabda has told me, and you can check with him, that the Centre has decided to suspend FDI in retail. If they do what they have told me they will do then there is no problem anymore. I have been told that the Cabinet decision on FDI will be put on hold till a consensus is evolved. Consensus means all opinions will be taken on board, and that means for now the problem is settled," said Ms Banerjee. 

 

However, there is confusion after Mamata Banerjee’s statement as sources say that a final decision on withholding FDI has not yet been taken and that the government will continue talks with the Opposition and Ms Banerjee. The government wanted to weigh the fallout of all possibilities, they added.

But government’s key troubleshooter Pranab Mukherjee clearly indicated that Ms Banerjee, the UPA government’s unpredictable ally, has stumped the government.

"I officially cannot say anything as Parliament is in session. I will only speak in Parliament," Mr Mukherjee said.

This exposed the divide between the government and the Congress.

Mamata Banerjee said that Pranab Mukherjee told her that the FDI is suspended, but sources in the Commerce Ministry say there is no decision yet on the suspension of FDI. Sources in the government also say that no vote is needed on the FDI issue and that the policy is to be notified only after the Winter Session of Parliament is over.

Now, going against what Mamata has announced will mean upsetting a key ally; supporting her may hurt the credibility the Prime Minister who had backed FDI at a Youth Congress meet recently, or what Commerce Minister Anand Sharma told NDTV.

"I know that a decision has been taken. To the best of my understanding, there cannot be a rollback," Mr Sharma said while speaking on NDTV’s The Buck Stops Here on Friday.

That is why Congress emerged cautious, almost agreeing with its ally.

"To end this stalemate, the party welcomes all meaningful steps. In such a situation, a broad consensus among the stakeholders in required," Congress spokesperson Janardhan Dwivedi said.

"We hope that Parliament can now function," said Parliamentary Affairs Minister Pawan Kumar Bansal.

But winning the ally does not guarantee peace in Parliament. The Opposition wants a roll back, not hold back.

"We want a roll back. I will speak to Mamata on this," NDA Convenor Sharad Yadav said.

While the Opposition claimed that the Prime Minister find himself isolated on the FDI decision, sources in the government say that the PM was preparing for a nuclear deal-kind of showdown on the FDI issue. But since the FDI move doesn’t need Parliament’s nod, a numerical test of nerves and numbers is being ruled out.