June 6th, 2013
Clarification issued today by DIPP on FDI in Retail.
June 6th, 2013
Clarification issued today by DIPP on FDI in Retail.
June 4th, 2013
As you know, superstores including Walmart, Carrefour, Tesco were studying the policy riders for 51% FDI in multibrand retail. As the DIPP received a number of queries from superstores, a multi-ministry meeting of concerned officials is being held today in DIPP to issue clarifications.
It is likely that the DIPP
- Would ask global superstores to invest 50% of only the first tranche of investments (minimum $100 million) in back-end infrastructure.
- Would declare that the 51% foreign direct investment limit in multi brand retail is composite one, including FDI and foreign institutional investment (FII).
- Would allow superstores to create back-end infrastructure in states that do not allow any FDI in multi-brand retail. As of now only 11 states have agreed to allow global retailers. Yesterday the new govt. of Himachal Pradesh announced its agreement with FDI retail policy.
On 3rd June 2013, Govt. of India defined Group firms as two or more enterprises that directly or indirectly are in a position to exercise 26% or more voting rights in the other enterprise or appoint more than 50% members on board of directors in the other enterprise.
Amidst widespread opposition to the Walmart’s backdoor entry of FDI in Multibrand retail (through Bharti-, the 50:50 joint venture between Walmart and Bharti for operating Cash-and-carry outlets in India), in April 2010 Govt. of India framed a policy that asked cash-and-carry businesses (Bharti-Walmart) to limit their sale to group firms at 25 per cent of their turnover. In absence of clear definition of what group firms meant Bharti-Walmart’s cash & carry business (20 Best Price Stores) continued to sale almost 85% of their products to Bharti Retail’s 200 Easy Day stores.
Now, Bharti-Walmart will either have to limit its sale to Easy Day to 25 per cent of its turnover or restructure its corporate structure.
Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2013,
Once it becomes law, unabated harassment of street vendors and hawkers and their extortion by police and municipal officials will hopefully end. As demanded by the Hawkers Joint Action Committee, Mr. Ajay Maken, the central minister for housing and urban poverty alleviation has fixed the norms for providing vending/hawking licences to 2.5% of city population. The reworked Bill makes it mandatory to form town and zonal vending committee in every city. Such committees would include 40% elected representatives of vendor groups, 10% NGOs and rest comprising town planners, administrators, police and elected people’s representatives.
Leaders of hawkers Joint Action Committee honoured the central minister for getting the revised bill approved from the cabinet and asked to table it before the parliament as soon as possible. The minister has assured the Hawkers delegation that the bill will be introduced to the parliament sooner than later.
Kolkata, May 21 — Supporting West Bengal Chief Minister Mamata Banerjee’s decision to withdraw from the UPA last September on the issue of FDI in retail, eminent writer Mahasweta Devi Tuesday exhorted people from all walks of life to protest against the measure.
“Of course, I support our chief minister’s decision to withdraw from the centre on FDI. I think everybody should protest against it. People from all walks of life should contribute in their own way in standing up against it,” Mahasweta Devi said while launching a book “FDI-Gobhir Shorjontror Shikar Aamra” (FDI-We are a target of conspiracy).
The 89-year-old Jnanpith awardee suggested tapping into indigenous resources for India’s growth and development.
“We have sufficient resources. If we use them properly then India can walk on a path of progress and development,” she said.
Mahasweta Devi said she was “somewhat satisfied” with the state government’s stance on introduction of foreign direct investment (FDI) in retail.
Commending the Trinamool Congress for “trying” to bring about changes during its two years in power, she said it is too early to comment on its impact.
“It’s too early to comment. It has just completed two years. It hasn’t done too good or anything worth praising nor it has done anything bad worth criticising.
“It’s trying… let’s just say that,” she added.
Trinamool Congress Monday completed two years in power in West Bengal.
As you know, Walmart is now in India. But Walmart is bad for small scale producers and retailers, which are the backbone of the great Indian economy. Like the Goa chief minister Manohar Parrikar said, “In India too, [Walmart] will kill the small scale producers.”
Walmart is also one of the most corrupt corporations in the world. Last year a New York Times story revealed how Walmart bribed and corrupted officials at all levels of government in order to enter Mexico. According to the article, “The Times’s examination reveals that Wal-Mart de Mexico was not the reluctant victim of a corrupt culture that insisted on bribes as the cost of doing business. Nor did it pay bribes merely to speed up routine approvals. Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law otherwise prohibited. It used bribes to subvert democratic governance — public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals.”
A big corporation “using bribes to subvert democratic governance” is the last thing India needs now, while citizens, civic leaders and even some politicians are working to make the government less corrupt. Between a corrupt Walmart and a corrupt government there is certainly illegal conduct happening or going to happen that will help the corporation and hurt India.
The good news is we can stop it. Did you know that you can make money from exposing Walmart corruption in India? The Foreign Corrupt Practices Act (FCPA) prohibits bribery of foreign officials by major American and foreign companies. Whistleblowers who report violations can recover a large reward for exposing FCPA violations. For example, if you expose a bribe for a new investment worth one crore, you could win ten to thirty lakh. All you need to do is to click www.walmart-corruption.com.
Share this page with your family and friends, and let them know that they can help stop corruption in India. And you just might win some money too! Let’s keep corruption out!
The Hawkers Joint Action Committee meeting held on 21st April, 2013 at the Sindhu Samaj Hall, Karolbagh unanimously decided to form fronts of Women and Minorities.
Md. Sayed, Hawkers representative of Badarpur Market and resident of Daryaganj was elected as convenor of the Minority Front.
Ms. Sushma, a member of the Zonal Vending Committee of North Delhi Municipal Corporation, Hawkers representative of Karolbagh and resident of Nawada, Dwarka was unanimously elected as Convenor of the Women Front of the Hawkers Joint Action Committee.
More than 100 hawkers representatives who participated in the meeting discussed issues including of newly elected Hon’ble Mayors and Standing Committee Chairpersons in all the three municipal corporations of Delhi. A detail discussion took place on the Food Safety and Standard Act and required interventions by Food vendors.
Hawkers Joint action Committee also decided to actively participate in the forthcoming national convention on FDI in Retail.
Please check out audio from India FDI Watch Director Dharmendra Kumar’s interview on New Zealand public radio.
Please check out FDI Watch audio on German radio documentary on superstores invasion in India.