There seems to be no end to the controversy surrounding FDI in retail for the Indian Government as mass protests across all the states are not soothing out. While parliament is not reaching at any consensus at all on the same, there are over 6,000 traders in Shimla who have closed their shops to oppose the decision.
Adding fuel to the fire in the joint opposition by Bharatiya Janata Party (BJP) in the state and Communist Party of India-Marxist (CPI-M), which are hell bent to jolt the government. As of now, no reports of violence have been received.
“We have got very good response from across the country and 5 crore traders will not open their shops tomorrow. They will hold protest in their own markets. We will not hold demonstrations in front of foreign stores”, said Praveen Khandelwal, Secretary-General of the Confederation of All India Traders association. Backed by support from other states, there seems to be no early breather for the government.
Apparently, there are confirmed reports that several Bharti-Walmart stores would be shut down on Thursday to avoid any violence. Even security has been escalated at stores of World’s second largest retailer Carrefour in Delhi and Jaipur as a part of precautionary measures. Meanwhile, such similar shutter down operation was seen in Karnataka against the government’s decision to allow 51% the FDI in retail.
Nonetheless, the government has assured that there decision in favor of public interest, there are lingering fears in the minds of retailers that there would be threat to their presence in case such malls are being set up in their states.
There are countries like US where such decisions have affected many small stores, and that’s what has made retailers to put up strong opposition for the entry of foreign players in the retail market. While government would be putting up their best efforts, it would be interesting to see how they would seam through the fierce attack of retailers and opposition parties.
The administration stated that it is expected to come forward with a National Manufacturing Plan by the end of September 2011 that aspires to generate mega industrial zones crosswise the nation with top-notch infrastructure facilities.
Commerce and Industry Minister Anand Sharma said, “The note (for the policy) will go to the Cabinet within a week. I do not foresee any delay. Hopefully within this month, it will become a reality.”
The national manufacturing plan eyes to generate 100 million extra jobs and take the share of manufacturing to 25% of India’s gross domestic product by the year 2020 as against 15-16%.
The section adds more than 80% to India’s total industrial production.
The plan also aimed to relax labour and environment regulations and looked for tax sops for the projected National Manufacturing Investment Zones (NMIZs).
These proposed big enclaves could even consider SEZs.
On the determined $90 billion Delhi-Mumbai Industrial Corridor (DMIC), Mr. Sharma stated that seven novel investment areas would be established crosswise the six Indian states under the project.
These two measures would assist unlock the true prospective of manufacturing in the country.
He also stated that the initial gathering of a Joint Task Force of the administration and industry will take place on September 12.
The Joint Task Force was declared after the minister held talks with CII on July 13.
Force Motors, is reported to have launched its first SUV Force One, and at Rs 10.65 lakh in Delhi, and the company is using the drivetrain technology gotten from Mercedes-Benz for the SUV, as its Passenger Vehicle Division spent the last one year or more to develop the new SUV.
Also, the company hopes to sell 4,000 units of the SUV in the first year, as the market size for the sector is about 70,000 units a year and the SUV is said to compete with, Mahindra Scorpio, Toyota Innova and the Tata Safari.
However, Force Motors intends to invest Rs 1,000 crore, in the next two years to boost its manufacturing footprint, and the company is presently discussing with the Madhya Pradesh Government to start a new manufacturing plant, with the decision being finalized in the next two months.
Hence, funds are said to be raised by combining of internal resources and loan, as the company might follow the capital market route as well as propose a rights issue.
Moreover, Dr. Abhay Firodia Chairman of Force Group, Stated: “The company may set up a new assembly line at its Pithampur facility or set up a third plant outside the state, and the installed capacity of the new line will be 12,000 units per annum that can be expanded to 24,000 units”.