Pranab to officially cancel retail FDI on Wednesday

Parliament is likely to finally start functioning on Wednesday, after a government climb-down on the issue of allowing foreign investment in multi-brand retail.

Both Prime Minister Manmohan Singh and finance minister Pranab Mukherjee had indicated over the weekend that the decision to liberalise FDI in retail would not be officially notified, and thus held in abeyance.

However, the opposition was adamant on an official statement to Parliament to this effect regard; and Mukherjee is expected to make the necessary statement on Wednesday.

Lawmakers have not transacted any official business since the beginning of the winter session of Parliament on 22 November, with both houses being routinely adjourned on account of a noisily belligerent opposition. The houses convene again on Wednesday after a four-day holiday.

Mukherjee, the well-known troubleshooter for the Congress, today called Bharatiya Janata Party leaders Sushma Swaraj and L K Advani this morning to inform them of the latest decision  (See: Retail FDI on hold; government to rejig policy).

Although the leaders reportedly told him they wanted a "rollback," not a "holdback", they seem to have agreed to let Parliament function. But ultimately, what happens in the houses on Wednesday is anybody's guess.