FDI in retail: Has Mamata won the battle?

New Delhi: In what came as a big blow to the government's plan to allow FDI in retail, under pressure from allies, it had to backtrack on it, according to sources.

Trinamool Congress chief and West Bengal Chief Minister Mamata Banerjee claims FDI in retail has been put on hold for now. The announcement came from Mamata Banerjee, who said Finance Minister Pranab Mukherjee told her about this.

"I have spoken twice with Pranab Mukherjee today. I have told him that our stand on FDI remains the same. Trinamool takes the issue of FDI very serious. We are concerned about farmers. Pranab Mukherjee has told me that Government will suspend it till consensus is evolved," Mamata said in Kolkata on Saturday.

Speaking to CNN-IBN, Mamata said that Pranab Mukherjee will announce the decision in Parliament on Wednesday. "Pranab Mukherjee will announce the decision in Parliament on Wednesday. Pranab told me that the decision on FDI in retail is suspended till the consensus is evolved," she said.

Sources have told CNN-IBN that Government is likely to make an announcement in this regard in Parliament on Wednesday. Pranab Mukherjee, who refused to make any announcement said the final announcement whatsoever will be made only in Parliament.

Sources say the Congress will discuss the issue with its allies after the winter session is over. However, speaking to CNN-IBN exclusively, Mamata Banerjee said she will oppose FDI in retail if it is brought in at a later stage.

Mamata has emerged king in the battle over FDI in retail. It was a loss of face for Prime Minister Manmohan Singh. FDI in retail is on hold till consensus is evolved.

Government is trying to save its face by insisting that its a temporary truce it has gone in for and that only a notification to make the FDI effective has been put on hold.

For many who thought this was Prime Minister Manmohan Singh's nuke deal moment, the decision has come as a huge embarrassment and it's likely to reinforce the perception that UPA-II has a weak leadership that is unable to stick to its stand.

FDI in retail had paralysed the working of the Parliament for over a week.

But the Opposition is not amused by this pause. They want a full stop to FDI in retail

While the government would like to give the impression that FDI could happen in future, with ally Mamata and Opposition in a combative mode, FDI rollback looms large. It's a loss of image for the Prime Minister and loads of disappointment for the advocates of this piece of reform in retail.

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