New Delhi: After months of speculation, Bharti enterprises declared in November last year that it would introduce the world's largest retailer, Wal-Mart to India.
The venture's first outlets are all set to open their doors to consumers by the August 15 this year.
However, there is a blockade in sight. The controversial FDI in retail sector, in the wake of Bharti-Wal-Mart venture, has come under the scanner.
Speaking with CNN-IBN the Congress confirmed that party chief Sonia Gandhi has intervened on the subject.
Sonia Gandhi, in a letter to Prime Minister Manmohan Singh, asked for a go-slow in allowing retail giants like Wal-Mart and Carrefour entering India.
She wants FDI to be reviewed. Commerce Minister Kamal Nath also told the TV-18 network that the PMO has asked the ministry for its comments.
"The PMO had asked for details on FDI policy in retail and we have sent our comments," Commerce and Industry Minister Kamal Nath was quoted by PTI as saying.
Kamal Nath had also said that as per the existing policy, FDI in retail is not allowed and no FDI agreement has been signed by anyone.
The skyline of Indian retail market, which is teeming with malls and shopping complexes, was already closely monitoring the Government's FDI policy for rolling out its retail plans.
A Bharti spokesperson, seeking to downplay the threat an MNC would pose to small scale retailers was quoted by PTI as saying that the joint venture with Wal-Mart was permissible under the existing policy. "The joint venture will look after cash and carry business which is permitted as per the existing FDI guidelines," he said.
However, Congress Spokesperson, Abhishek Manu Singhvi told PTI, "FDI in retail should not be unregulated. Government should first provide for safeguards before taking decision on the issue."
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