It’s perhaps a foregone conclusion: Wal-Mart won’t get a red-carpet welcome for its joint venture in the land of the Reds.
MUMBAI: It’s perhaps a foregone conclusion: Wal-Mart won’t get a red-carpet welcome for its joint venture in the land of the Reds.
But worse seems to be in store than mere indifference to such a venture, which has brought Wal-Mart officials on their toes and at the doorstep of West Bengal chief minister Buddhadeb Bhattacharya.
But all that is unlikely to be of any help. The global retail giant will, going by all indications, confront numerous stumbling blocks and protests while entering West Bengal, besides Kerala and Tripura, as part of its joint venture with Bharti Enterprises. All these states have Marxists-led coalition in power and all of them hold the view that the entry of MNCs in retail will lead to massive displacement of unorganised retailers besides rendering several farmers and manufacturers jobless.
Bhattacharjee has refused to relent: he won’t give permission to Wal-Mart to “set up” retail stores in Bengal for the time being.
There is however, a saving grace. The government may allow Wal-Mart’s venture to run wholesale business. That too, with a condition: the business can sell products only to hotels, saidsources in the government.
On its part, the Left governments in West Bengal and the other two states believe there is a need for a strong regulatory framework to protect the domestic retail sector. If that is not taken care of by the Centre, experts warn, Wal-Mart-Bharti alliance will face stiff resistance while acquiring property in these states, which, experts vouch, are very good markets.
Sources said Bhattacharjee is likely to discuss the issue shortly with the Centre, which, ironically, is contemplating easing of FDI norms for sector-specific, multi-brand retailing.
Meanwhile, Rajan Bharti Mittal, joint managing director, Bharti, said: “The talk on labour issue is hypothetical.” He added: “We are yet to firm up our retail rollout plans.”
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