Cong, opposition fight over FDI continues; traders call nationwide protests

New Delhi: The war over allowing foreign equity in Indian retail market intensified Wednesday with the government and the opposition refusing to budge from their stated positions on the cabinet decision.

The standoff led to parliament shutting down once again for the day without any business conducted since the crucial winter session began Nov 22.

Various traders' organisations have called for nationwide protests Thursday over the decision to allow Foreign Direct Investment (FDI) in multi-brand retail. However, industry lobbies like the CII and the FICCI have extended full support to the cabinet decision.

Despite tough opposition from the Bharatiya Janata Party (BJP) and the Left parties, the Congress ruled out reversing the decision to allow 51 percent FDI in multi-brand retail and 100 percent in single-brand retail.

"The prime minister has made it clear that it is a well thought-out decision and the party supports it," Congress spokesperson Manish Tewari told reporters.

Besides the opposition from outside, the Congress is also fighting a war within. At least two MPs have written to Prime Minister Manmohan Singh asking him to reverse the decision.

Finance Minister Pranab Mukherjee, the Congress' known troubleshooter, held a brief meeting with party president Sonia Gandhi at her 10 Janpath residence before meeting party MPs to allay their apprehensions on the decision, sources said.

Top leaders of the Congress, including Prime Minister Manmohan Singh and Gandhi, went into a huddle to discuss how to resolve the crisis.

The meeting of the Congress core group was held at the prime minister's 7, Race Course Road official residence.

The party sources said that the highest decision making body of the party ruled out any question of withdrawing the decision or diluting it substantially. At the most, minor compromises like raising the cap on purchase from small and medium enterprises (SMEs) may be accepted, informed sources told IANS about the meeting.

The opposition from the Congress partners in the United Progressive Alliance (UPA) -- the DMK and the Trinamool Congress each with 18 Lok Sabha MPs -- is also a major concern for the government.

Manmohan Singh spoke to leaders of the Trinamool and the DMK in a bid to find a way out of the impasse.

He explained to them the need to avoid a political crisis over the FDI issue. This "was well understood" by the leaders of the two parties, the sources said.

Congress spokesperson Manish Tewari confirmed the contact with the key allies but did not take any names. "It is a matter of coordination between us," Tewari said.

Sources said the Congress strategy will be to ensure that the DMK and Trinamool MPs do not vote against the government if an adjournment motion that entails vote on FDI comes up in parliament.

The sources said the DMK has conveyed to the Congress that it would not vote against the government in parliament. The Congress is trying to win over the Trinamool.

As the Congress refused to budge, the opposition was equally categorical saying it won't allow parliament to function unless the government withdraws the decision or agrees to a debate followed by a vote.

The BJP has demanded that normal business be suspended to focus on FDI with a strongly worded adjournment motion demanding revocation of the retail reforms.

"If the government even wants to suggest they want to change the wording of the adjournment motion moved by me, I am making it clear there will be no change," said the BJP's Murli Manohar Joshi.

He also challenged the government's claim that reforms would help fight inflation. "Is there no inflation in places where Wal-Mart exists... The government's statement that these reforms will help employ lakhs of people is absolutely baseless," Joshi added.

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