This Article is From Nov 27, 2011

Won't allow FDI in retail in Tamil Nadu, says Jayalalithaa

Won't allow FDI in retail in Tamil Nadu, says Jayalalithaa
Chennai: Joining the growing chorus of opposition against the government's move to allow 51 per cent Foreign Direct Investment (FDI) in retail, Tamil Nadu Chief Minister and AIADMK chief J Jayalalithaa today said that she wouldn't allow multi-brand global players to set up hyper markets in Tamil Nadu.

The Cabinet's nod to allow 51% FDI in the multi-brand retail segment will facilitate giants like Walmart, Carrefour and Tesco to set shop in the country. Previously, such retailers were not allowed to conduct retail business in the country.

Slamming the Centre for the "ill-advised" move, Ms Jayalalithaa, in a statement, said that retail trade would be completely taken over by MNC-dominated giants, which wasn't good for the country.

"MNCs will monopolise market, exploit farmers and consumers...Forty million people will be uprooted and thrown out of business.

"Centre's move has shocked millions of small vendors...Vendors' fear that this will throttle small retailers is not unfounded", the Chief Minister argued.

She also accused the Centre of taking the decision "under pressure from few retail giants" and called for its immediate reversal.

The Chief Minister's criticism of the government's move is the latest in a string of adverse reactions from political parties including some allies like the Trinamool Congress. The Bharatiya Janata Party (BJP) along with the Left has been particularly opposed to the move and is even mulling an adjournment motion on the issue in the Lok Sabha on Monday. In fact, senior leader Sushma Swaraj yesterday accused the Centre of showing contempt of Parliament by not discussing a crucial issue like FDI. Ms Swaraj, who is also the Leader of the Opposition in the Lok Sabha had tweeted, "On Friday the House was stalled on the issue of 51% FDI in retail. Parliament is in session and government announced a decision of such far reaching consequences outside the Parliament." (Read: Govt's FDI decision contempt of House, says Swaraj)

Ms Jayalalithaa echoed the BJP leader's anger, saying that the government's unilateral move on FDI was an "unprecedented" and "arrogant" move.

Uttar Pradesh Chief Minister Mayawati too has warned the government against going ahead with its decision, even threatening to disrupt Parliament if the move in not withdrawn. She had, in fact, alleged that FDI in retail would help Congress General Secretary Rahul Gandhi's foreign friends. (Read)

But the government seems unfazed. It, in fact, seems intent on going ahead with its decision after it placed - in a major publicity blitzkrieg - colourful, full-page, glitzy advertisements in all major newspapers this morning to highlight the benefits of FDI in retail. (Read)
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