Kerala won't implement decision on FDI in retail: Oommen Chandy

Congress-ruled Kerala on Thursday ruled out implementing the central government's decision on FDI in retail, saying it was not in the interest of the state.

Chief Minister Oommen Chandy said Kerala could not agree with the Centre's decision to allow 51 per cent FDI in multi-brand retail.

"We will not implement it (FDI in retail). We have already conveyed our stand (to the Centre) that we cannot agree with it," Chandy told reporters here.

The Chief Minister's statement assumes significance as Congress party, including Rahul Gandhi, has been pushing for FDI in retail, a decision regarding which was taken by the Union Cabinet in November last year.

Gandhi had termed the Centre's decision as pro-farmer and called those opposing the initiative as anti-farmer.

The government had to put on hold its decision following stiff opposition from some of UPA allies like Mamata Banerjee-led Trinamool Congress.

In an interview in December, Prime Minister Manmohan Singh had indicated that he hopes to revisit retail reforms after March, by which time Assembly elections in five states get over.

Chandy, who was addressing press along with Congress' Kerala Unit chief Ramesh Chennithala, noted that the state Congress unit had already expressed its opposition to FDI in retail.

While justifying his government's decision, Chandy pointed out that implementation of the move on FDI in retail has been left to individual states and Kerala has decided not to do so.