In a letter to the Department of Industrial Policy and Promotion (DIPP), the newly-formed state government has asked the Centre to remove Delhi from the list of states which have conveyed their agreement to the policy of FDI in multi-brand retail trading.
The government's initiative to allow foreign retailers access to Indian markets has received a serious set back. The Aam Aadmi Party (AAP) government has withdrawn the permission given to foreign retailers to open stores in Delhi. CNBC-TV18’s Rituparna Bhuyan reports.
In a letter to the Department of Industrial Policy and Promotion (DIPP), the newly-formed state government has asked the Centre to remove Delhi from the list of states which have conveyed their agreement to the policy of FDI in multi-brand retail trading. "The DIPP has received the letter in this regard from the Delhi government and is looking into it," an official said.
Former state Chief Minister Sheila Dikshit had agreed to implement the policy in the national capital. Last year, the central government permitted 51 per cent FDI in the multi-brand retail trading and left its implementation on the states.
The DIPP, sources say, is now processing that application. The FDI policy is silent on withdrawal of any such permission that was given by state government.
Rajasthan, which is now being led by the BJP, is also expected to take a view on the policy on which the earlier government had given its consent. "The DIPP is keeping its fingers crossed with regard to Rajasthan as the BJP had been opposing the policy strongly," the official added.
As many as 12 states, mostly Congress-led, including Delhi had agreed to allow global retailers to open super market chains. The other states include Maharashtra, Karnataka and Andhra Pradesh. Delhi has become the first state to withdraw permission for FDI in retail sector.
The Aam Aadmi Party (AAP) in the party manifesto had expressed its opposition to the policy of FDI in multi-brand retail.
"The Walmart experience shows that farmers in the US were not benefited, but deprived besides being a very bad employer," Arvind Kejriwal, party's founder and now Delhi Chief Minister, had said earlier.
On the national level, the FDI in multi-brand retail had not evoked the expected response from the global retailers. Till now only one proposal of UK-based Tesco has been cleared by the central government.
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