Yechury concerned over FDI in retail

While the crisis over the renewal of the licence of Metro Cash & Carry is over, the CPM is still skeptical about foreign direct investment in retail. Politburo member Sitaram Yechuri said the German giant was given the permission only for conducting wholesale business. He was speaking at an interactive session organised by a chamber of commerce on Monday where the members expressed their concern over the industrialisation scenario in West Bengal.

For FDI in India, Yechuri laid down a few conditions. “FDI should provide employment and ensure technological advancement,” Yechuri said, adding that FDI in retail will adversely affect employment opportunities. He said one should be careful that the FDI does not enter the retail market through the backdoor.

“The companies begin by selling only single brand items,” he said, hinting that they later enter into other segments.

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Talking about the Singur crisis, Yechuri said it was imperative for the state government to acquire farmland in the area as there is only one per cent fallow land in West Bengal. “Land acquisition laws must be amended and the amount of compensation should be incorporated in the Act,” he said, referring to the party’s efforts to change the 1894 Land Acquisition Act.

“Had the Act been amended, the crisis in Singur would not have occurred,” said the CPM leader.

“The issue will be settled at the meeting between the CM and Tata,” he said.