Govt firm on notifying FDI in retail: Sources

UPA II’s key ally Mulayam Singh Yadav has joined hands with left parties in writing to PM Manmohan Singh, asking him not to operationalise FDI in multi-brand retail.

However CNBC-TV18 learns that that the government is firm on notifying FDI in retail and will not alter its plans due to the opposition.

Sources added that Commerce Minister Anand Sharma is likely to reach out to Uttar Pradesh Chief Minister Akhilesh Singh Yadav personally on the issue.

Sharma will convey to Yadav that states will have final authority to give licenses and it is up to individual states to decide on allowing retail FDI.

DIPP sources add that, the spirit of federalism in Indian constitution has to be respected rights of states to allow FDI funded stores have to be respected.

Meanwhile, CNBC-TV18 learns that Promod and Tommy Hilfiger have applied for 51% FDI in single-brand retail.