Govt bows to Oppn pressure, puts FDI in retail on hold

New Delhi - 07 Dec 2011 (PTI): Bowing to intense pressure from within and outside, government today announced suspension of its decision to allow FDI in retail, bringing Parliament back to business after nine days of logjam.

The breakthrough in the standoff came at an all-party meetingthis morningwhere the government made the offer to put on hold the Cabinet decision to allow 51 per cent FDI in multi-brand retail and the Opposition agreed to it.

Soon after,Finance MinisterPranab Mukherjeemade an announcement in the Lok Sabha that the government has decided to put on hold the decision on FDI till all stakeholders were consulted.

A similar statement was made in the Rajya Sabha by Commerce and Industry Minister Anand Sharma.

"The decision to permit 51 per cent FDI in multi-brand retail is suspended till a consensus is developed among various stakeholders," Mukherjee said in the Lok Sabha.

He explained that the stakeholders were political parties and Chief Ministers without whose involvement this decision "cannot be implemented".

Leader of the OppositionSushma Swarajwelcomed the announcement to put on hold the decision.

"Government has bowed to the wishes of the people. To bow before the will of the people is not defeat," she said.

After the statement by the Leader of the House, SpeakerMeira Kumardisallowed the adjournment motions moved by several opposition parties, including the BJP, the Left and BSP. BSP members were dissatisfied and staged a walkout.

The House then took up the Question Hour for the first time since the Winter session began on November 22.

BJP MP Tarun Vijay said, "It is a win-win situation for the people of India, for the government, for the opposition."

He said, "All the three have won because government has respected the sentiments of the people. Opposition has agreed to the government's proposal and the people have benefited."

Vijay said theFDI in retaildecision has been put in "cold storage" and that is what the people wanted.

"It was extra-ordinarysolidarityshown by various political parties," the Rajya Sabha MP said.