Global retail firms may face hurdle in 28 of 53 cities opened for FDI

NEW DELHI: With BJP, JD(U), AIADMK, BSP and Trinamool Congress strongly opposing FDI in multi-brand retail, global chains may face problems in opening stores in 28 of the 53 cities which have been thrown open to retailers like Walmart and Carrefour. The parties and alliances ruling in 11 major states have strongly opposed the decision of the Central government to allow foreign direct investment (FDI) in multi-brand retail which is dominated by small traders. According to 2011 Census, there are 28 cities in 11 states ruled by the parties opposed to the decision. These include big cities like Bangalore, Kolkata, Ahmedabad, Patna, Allahabad and Bhopal which have over one million population, the threshold set by Cabinet while approving FDI in retail on November 24. Excluding Punjab, BJP and NDA rule in eight states, including Madhya Pradesh, Gujarat, Karnataka, Chattisgarh, Chennai, Coimbatore, Jharkhand, Uttarakhand, Bihar and Himachal Pradesh. BJP indicated that states where the party is in power may not permit foreign stores. Besides, Uttar Pradesh Chief Minister Mayawati has already stated that no foreign retailers would be allowed in her state. The final authority for granting the trade licence rests with the states under their respective shops and establishment Acts. Bihar Chief Minister Nitish Kumar yesterday vehemently opposed the decision to allow 51 per cent FDI in retail saying "It will ruin the retailers and lead to a point of unemployment".

Punjab to issue 5,651 licences to wood-based industries

CHANDIGARH: The Punjab government today received approval from Central Empowered Committee (CEC) to issue licences to 5,651 wood-based industries units (WBIs) in the state giving a major boost agro-forestry in the state. While presiding over a high level departmental meeting Punjab Forest and Wild Life Preservation Minister Arunesh Shakir informed that these WBIs include 5,290 sawmills, 139 veneer mills, 203 plywood factories and 19 other units and the licenses would be issued to these units on the basis of one time payment. He said 360 WBIs established after 30 October 2002 were closed down in the state as per the orders of Supreme Court according to which "no state or Union Territory shall permit any unlicensed saw mill, veneer, plywood industry to operate an they are directed to close all such units forthwith. No state government or Union Territory will permit the opening of these units without the prior permission of the Central Empowered Committee. The Chief Secretary of the State will ensure strict compliance of this direction. Shakir said that with the concerted efforts of the Punjab government WBI once again would flourish in the state. He said at present 32 lakh cubic metre wood was available every year in the state and consumption of these WBI was 28 lakh cubic metre per year. For the consumption of surplus 4 lakh cubic metre wood approximately 200 new industrial units were to be set up which would also generate direct and indirect employment to thousands of youth in the state. Shakir said the government was working out the modalities of this project which could change the entire agricultural scenario of the state with large scale supply of cloned plants to the farmers in a sustained manner. The Minister further stated that the state government was also studying the possibilities to install Ply Factories at the behest of Punjab Forest Corporation with which more and more farmers could be motivated to plant trees like popular and eucalyptus. He said with the setting up of these factories, the Corporation would be in position to fix the MSP of agro forestry products which was long demand of the farmers of the state.