Economy Sep 14, 2012
8.50pmBihar CM Nitish Kumar calls the govt 'suicidal'.
Nitish Kumar called the government's attempts suicidal and said that the FDI move rang the death knell for small Indian retailers.
7.58pm Commerce Minister Anand Sharma to CNN-IBN
"People did not understand enormity of the decisions when they were made last year. I wrote to every chief minister. Some enthusiastically supported, some had reservations. The BJP and NDA CMs said that they are bound by NDA opposition. I respect that."
"All states in India are equal as per the Constitution. The states that want it cannot be denied and the states that don't want cannot be forced."
"I on my part have met her (Mamata Banerjee) twice. I pity BJP's opportunistic politics. I respect Mamata's decisions whether or not to implement FDI in multi-brand retail. Although Mamata is an ally, she cannot decide on behalf of other states."
"(MSME Minister) Vyalar Ravi is fully on board and party to this decision on single brand retail."
"We have created a policy and it is for the investors to decide on that whether they (foreign airlines) invest or not."
"We keep on talking with our allies and our supporting parties. We cannot expect unanimous decisions on everything from everyone."
7.55pm Rajan Bharti Mittal, vice chairman and managing director, Bharti Enterprises
"This is a landmark decision in India's economic reforms process. Development of organised retail in India will bring immense benefits to stakeholders across the value chain - from farmers to small manufacturers and above all to consumers. Enhanced investment in the sector can further the cause of employment, particularly amongst youth. In addition, this decision will open the doors for much needed technology and investments to develop the entire retail ecosystem in the country.
Bharti Walmart's Cash & Carry venture is already sourcing fresh produce directly from thousands of farmers as well as other merchandise from local manufacturers, thereby adding to the local economy's growth and delivering immense value benefit to its customers such as kirana stores and other institutions."
7.42pm TMC's Mukul Roy calls up Ahmed Patel, conveys Mamata's ultimatum.
7.40pm BJP chief spokesperson Ravi Shankar Prasad
"BJP strongly condemns this hurried decision forcing FDI in multi-brand retail in India. Inspite of serious opposition from within Congress, its allies and nearly the entire Opposition led by BJP, the government has seriously jeopardised the life, livelihood and employment of five crore people involved in retail trade in the country."
7.35pm Raj Jain, MD, Wal-Mart India
"Big money will enter India over a period of time because of these decisions. It will increase employment opportunity for the youngsters."
7.25pm CPM general secretary Prakash
Karat on FDI in multi-brand retail
"The decision will be disastrous for the country and spell doom for lakhs of small shopowners."
"Most state governments are against multi-brand retail."
7.18pm Highlights of disinvestment of 10% Paid Up Equity in Oil India Limited
# The Cabinet Committee on Economic Affairs has approved the disinvestment of 10 percent paid up equity of Oil India Ltd. (OIL) out of the Government of India's holding of 78.43 %.
# After this disinvestment, the government shareholding will come down to 68.43%.
# The paid up equity capital of the company, as on 31st March, 2012 is Rs 601.13 crore.
# OIL is a listed Navratna Central Public Sector Enterprise and is OIL is engaged in the exploration, development and production of crude oil and natural gas, transportation of crude oil and production of LPG.
Highlights of disinvestment of 9.33% Paid Up Equity in MMTC Ltd
# The CCEA has approved the disinvestment of 9.33% paid up equity of MMTC Ltd. out of the government's holding of 99.33% through an Offer for Sale of Shares through Stock Exchanges.
# After this disinvestment the government's shareholding in the company would come down to 90 percent.
# The paid up equity capital of the company, as on 31st March, 2012 is Rs100 crore.
# MMTC is a listed 'Mini Ratna' Central Public Sector Enterprise.
Highlights of disinvestment of 12.15 Percent Paid Up Equity in National Aluminium Company Limited
# The CCEA has approved the disinvestment of 12.15% paid up equity of the National Aluminium Company Limited (NALCO) out of the government's holding of 87.15%.
# After this disinvestment the Government of India's shareholding in the company would come down to 75 percent.
# The paid up equity capital of the company, as on 31st March, 2012 is Rs 1,288.62 crore.
Highlights of disinvestment of 9.59% Equity in Hindustan Copper Limited
# The Cabinet Committee on Economic Affairs has approved the disinvestment of 9.59% equity of Hindustan Copper Limited (HCL), out of the government's holding of 99.59%.
# After this disinvestment the g's shareholding in the company would come down to 90 percent.
# The paid up equity capital of the company, as on 31 March 2012 is Rs 462.61 crore.
7.05pm We are not threatening the UPA government but we are with the poor people. Mamata Banerjee is ready to take any strong decision. We are deeply shocked and offended: Kunal Ghosh, Trinamool MP to Times Now.
7.00pm West Bengal Chief Minister and Trinamool Congress chief Mamata Banerjee has reportedly given a 72-hour deadline to the Centre to roll back diesel price, cap of six per annum on LPG cylinders at subsidised rates and FDI in multi-brand retail.
She has called a meeting of the Trinamool MPs on Tuesday in Kolkata where they may decide to take "the final step" (pulling out of the government).
6.55pm Union Minister for Railways and Trinamool Congress general secretary Mukul Roy
"The TMC is opposed to FDI in retail sector. There is no doubt that we are opposing the decision. TMC was not consulted before be it on price hike or FDI in multi-brand retail."
"Whether we shall quit the government, I cannot say individually. It will be decided by the party."
6.50pm: Cabinet spokespersons Ambika Soni and Anand Sharma address the media on the FDI decisions. Highlights:
FDI in multi-brand retail
Foreign multi-brand retail stores may be opened in cities of over 1 million population. Agrarian states also supported FDI in multi-brand retail. 51% multi-brand retail to bring $100 million
It is imperative to have cold storage facility, good processing facility and better remunerations.This policy is an enabling policy for farmers. We have certain conditionalities unlike other countries enabling FDI
Consensus building is always the sincere effort of the UPA government. I have personally written to all chief ministers.Consensus building has been a sincere endeavor of the UPA government through a transparent democratic process.Bihar, West Bengal had reservations on this matter. This is a normal response to big ticket reforms.
Andhra, Assam, Haryana, Delhi, Uttarakhand, Rajastha, Manipur, J&K asked for FDI in multibrand FDI.
FDI in single brand retail
30% SME sourcing clause tweaked.
100% FDI in single brand retail was allowed W/30% sourcing from SSI
Condition on foreign ownership of brands has been changed
Today's decision provides more clarity to single brand retail
100% FDI in single brand has been notified. Prior to this 51% FDI in single brand was allowed without any condition.
Divestment of PSUs
# The CCEA also approved divestment in public sector enterprises-Oil India (10%), NALCO (12.5%), Hindustan Copper (9.59%), Neyveli Lignite Corporation (5%)-to make the exchequer by Rs 15,000 crore.
FDI in broadcasting and power sections
# FDI for Power Exchanges cleared
# Broadcasting sector: Cabinet relaxes FDI policy for broadcasting services. FDI in 49% via automatic route, beyond 49% up to 74% through the FIPB route in the Broadcast Carriage Services.
FDI in aviation
FDI of 49% in aviation for non-scheduled operators. Detailed rules will be made by the Ministry of Civil Aviation: CEO, MD shoul be Indian including 2/3 of the directors.
6.00pm Union Civil Aviation Minister
Reacting on the approval of FDI in aviation, Union Civil Aviation Minister, Ajit Singh said, "The decision sends a clear message for the sector that is under stress. Now the banks can look at them favourably. The managerial and technical expertise will be available to local airlines plus everything that goes with this. Codesharing benefit will also be there."
5.45pm The Cabinet Committee on Economic Affairs today approved number of policy decisions like FDIs in multi-brand retail and aviation sector.
The CCEA also approved divestment in public sector enterprises-Oil India (10%), NALCO (12.5%), Hindustan Copper (9.59%), Neyveli Lignite Corporation (5%) and-to make the exchequer by Rs 15,000 crore.
While FDI in single brand retail will allow foreign players to take controlling stake (51%) in an Indian entity, the airlines from abroad can buy 49% shares in an Indian carrier.
However, the government has left the decision on implementing the FDI in multi-brand retail to the states. The government has made it clear that there would be no implementation of FDI in multi-brand retail without approval of the states.
For single-brand retail, the Cabinet decided that any firm seeking waiver of the mandatory 30 percent local sourcing norms would have to set up a manufacturing facility in the country, the minister willing to remain anonymous said.
In November last year, the government had approved 51 percent FDI in multi-brand. This was, however, put on hold due to political opposition, including from UPA constituent Trinamool Congress.
The minister said since the implementation of the decision was put on hold, it had to go to the Cabinet again before going ahead with the decision.
With agency input
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