Mamata Banerjee, Pranab Mukherjee

Dec. 3: Foreign investment in retail entered a tricky phase of semantics and posturing today with Mamata Banerjee saying the Centre had assured her that the decision had been “suspended” and sources in Delhi pointing out the choice of word in itself suggested the last word had not been uttered yet.

“Pranab babu has told me (over the telephone) that the government is suspending any further move on FDI till a consensus is evolved,” the chief minister said at Writers’ Buildings.

Contacted by The Telegraph, Pranab Mukherjee said: “Since the House is in session, I shall not make any comment on the government’s decision on FDI in retail. Whatever has to be said, I shall say in Parliament.”

Asked if he had conveyed to Mamata that the decision on FDI in retail was suspended, he said: “The decision has been suspended. Discussions are on. But I am not saying anything to the media since Parliament is in session.”

UPA sources said the “suspension” offered the Centre time which it will use to try to turn Mamata Banerjee around by incorporating her suggestions. The Centre is even willing to discuss the issue at another cabinet meeting if a consensus emerges on possible amendments, though Mamata has so far not given any indication of a rethink.

The government, Congress sources said, is open to announcing in Parliament on Wednesday that it is willing to put the FDI decision on hold and get the sense of the House without a vote. At the same time, it will refrain from committing its willingness to roll back the FDI decision, a move that will keep the options open post-session.

However, keeping the nuclear deal experience in mind, the Opposition suspects that the Centre is stalling for time. Opposition sources feel that the “suspension” will offer the Trinamul Congress and the DMK the face-saving option of voting for the government if an adjournment motion is moved to seek a “rollback” of the decision allowing FDI in multi-brand retail. This will help Mamata fulfil the assurance she gave the Prime Minister yesterday that she did not want the UPA government to be toppled.

If the government wants to go ahead with the FDI liberalisation notification, which in any case will take a few weeks to be finalised, it can do so after the session as only an executive order, and no legislative changes, are required.

The UPA sources said the government would use the intervening days to engage the Opposition as well as the allies and try to address and accommodate their concerns as far as possible. Besides, the states will still have the final say in giving the last-mile clearances to foreign investors.

The Centre appeared keen to allow some element of confusion to creep in, desisting from issuing any formal statement till this evening. The Prime Minister was in Manipur during the day.

If the silence was a deliberate strategy, it has some parallels with the nuclear deal stand-off. During the nuclear agreement controversy, the Prime Minister had said at one stage that “if the deal does not come through, that is not the end of life…”. Eventually, he went out of his way to push through the deal.

Singh’s gamble had paid off then. But the success of the retail strategy will hinge on how far the Congress will go to back him, which will depend on the party’s assessment of its gain and loss on the ground.

UPA sources said the Congress core committee took the decision last night to offer an olive branch to Mamata. Several leaders felt that there was no point in precipitating a crisis when the government has two more years to complete and the party is not in a position of strength as it was during the nuclear row. However, the party agreed with the government that efforts to implement the FDI decision should continue.