Saturday, October 22 2005 18:12 Hrs (IST) - World Time -

New Delhi: The left parties will oppose opening of retail sector to FDI when they meet United Progressive Alliance (UPA) leaders at a meeting of the coordination committee to be held after a gap of four months on October 27.

The left will also raise the issue of mopping up additional resources for realising promises for social sector made in the National Common Minimum Programme and public sector reforms at the meeting, Communist Party of India-Marxist (CPI-M) General Secretary Prakash Karat said in an interactive session with the Forum of Financial Writers today (Oct 22, 2005).

This will be the first time that the Left parties will be attending the coordination committee after it boycotted the meetings following the Government proposal to divest 10 per cent stake in Bharat Heavy Electricals Limited (BHEL), which was subsequently withdrawn to facilitate the Left parties come back for the meeting.

"We do not have any negative approach on FDI. But on FDI in retail, our main concern is that it will displace employment. We do not have any preconceived notion but our opposition to FDI in retail is based on realities on the ground," Karat said.

Trade associations joined the recent strike against Government's economic policies, saying that they are downing shutters because they are opposed to the Government proposal to open up retail sector for FDI, he said.

The CPI (M) General Secretary said the left has not discussed the issue of opening up of retail sector to FDI with the Government till recently.

When asked about the contradiction between the left opposing FDI in retail sector at the Centre and inviting Indonesia-based Salim Group's Executive Beeny Santoso in Kolkota, Karat simply said Buddadev Bhattacharjee as West Bengal Chief Minister has to meet many people.

"We are committed that we will not undo what we have achieved in West Bengal in terms of land reforms. We will not convert fertile agriculture land into industrial land," he said.

He did not subscribe to the view that the Left parties have adopted double standards with regard to reforms, adopting one policy in West Bengal and another at the Centre.

"We are only asking the UPA Government to do what we are doing in West Bengal," he added.

The Left is likely to hand over a dissent note to the UPA leaders on the Government's reported offer to lower the cap from 100 per cent to 49 per cent in retail and open the sector in a phased manner.

The left did not buy the Government's argument that FDI in retail will not affect small retailers as only up-market customers will access these outlets.

On the other issues that will be taken up at the co-ordination committee, Karat said resources for meeting social objectives mentioned in NCMP can be raised by increasing tax-GDP ratio. "We are not saying tax rates should be lowered and we were not for doing away with Capital Gains Tax which was abolished."