Financial Daily from THE HINDU group of publications
Friday, Apr 25, 2003
Financial Daily from THE HINDU group of publications Friday, Apr 25, 2003 |
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Foreign Direct Investment Industry & Economy - Foreign Direct Investment Hiking FDI cap: Why the Cabinet fought shy Our Bureau
NEW DELHI, April 24 IT was perhaps the fear of the forthcoming elections and the fall-out on the ruling party that forced the Union Cabinet to defer a decision on increasing the FDI caps in various sectors, including telecom and domestic civil aviation. While there is no official word on what transpired at the Wednesday's meeting, sources maintain that at least two very senior Cabinet Ministers spoke out against the proposed move to hike FDI in various sectors. One of them is said to have argued that if the Government was keen to hike FDI limits to 100 per cent in about seven specific sectors, it would be better to wind up the public sector undertakings (PSUs) engaged in those fields. Besides, another senior Minister who, till recently, had been a very vocal proponent of disinvestment and came in for attack by the Swadeshi Jagran Manch was said to have backtracked on the FDI issue at the Cabinet meeting, perhaps, to regain some lost ground. Yet another senior Minister, with socialist leanings, it is learnt, advised his colleagues to put off the matter till the elections were over. With the Cabinet seemingly split down the middle over the FDI issue, it was decided to defer a decision on the proposal and the meeting ended with slogans of `Bharat Mata ki jai' and `Jai Hind'.
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