Government pauses FDI issue to buy peace in Parliament

In a bid to buy peace in Parliament, the government today said a final decision on the FDI issue will be taken only after consulting stakeholders and the opposition which insisted on a complete rollback and not just holdback.

With the Government in a bind and Parliament paralysed for nearly two weeks, Finance Minister Pranab Mukherjee today spoke to Leader of Opposition in Lok Sabha Sushma Swaraj and CPI(M) leader Sitaram Yechury and informed them that the government is willing to hold back the decision to allow 51 per cent FDI in multi-brand retail.

Both Swaraj and Yechury suggested that Government convene an all-party meeting to convey its decision and then inform Parliament.

"I told Pranabda that he should pick up the threads where they were left the last time. Since he had promised to get back to the opposition in the last all-party meeting, a similar meeting should be convened on Wednesday (December 7) in the morning where the government can clarify its stand," Swaraj told PTI.

BJP has made it clear that it wanted a complete rollback of Government's decision on FDI. "BJP has cleaqrly stated in the all-party meeting that it wants a rollback. Let the Government come out with a formal response," party spokesperson Ravi Shankar Prasad told reporters.

"We continue to stick to our demand of unconditional reversal of the decision on FDI. Mukherjee told us that Government has decided to put the decision of FDI in suspension and wanted the Parliament session to continue," Yechury later said.

However, this did not convince Swaraj and Yechury and both insisted that an all-party meeting be called where the government can formally convey its view.

"On that basis, a decision can be taken," Yechury said.

Sources in both the BJP and the Left parties insisted that since there are differences within the Union Cabinet as well as in Congress on the FDI issue, such informal communication may not be the last word.

UPA allies TMC and DMK have openly opposed the decision while NCP has suggested that the government should go by the sense of the House on this matter.

Asked whether Mukherjee had told her about rollback of the decision or merely about holding it back, Swaraj said he had not discussed the issue in detail and insisted on making the stand clear on the floor of the House.

She later called up Parliamentary Affairs Minister Pawan Kumar Bansal and told him about the conversation with Mukherjee and emphasised that an all-party meeting be held.

Government's move to press the pause button on FDI was made public first by Trinamool Congress chief Mamata Banerjee after a telephonic conversation in Kolkata with Mukherjee on Saturday.

Asked what would be the BJP response if the government only offers to defer the decision on the pretext of making changes in the policy, Swaraj said her party was firm on its stand on rollback of FDI in multi-brand retail but would see what the UPA states on Wednesday before taking a decision.

Yechury said government has to rollback this decision. "Whatever proposal the government has it should keep it before the all-party meeting. On its basis, we will take a decision," he said.

In reply to another question, Swaraj said even if the FDI deadlock is resolved, BJP will press for acceptance of its adjournment motion on black money and a debate on price rise (moved by the Left parties) under Rule 193 (which does not entail voting).

Both the Left parties and the BJP also sought to blame the government for the deadlock.

"I told Mukherjee that we always want Parliament to function. The question is will the government allow the Parliament to function. It should correct the decision it has made," Yechury said.