Govt approves 51% FDI in multi-brand retail

The Cabinet today (September 14, 2012) decided to operationalise 51 per cent FDI in multi-brand retail but left it to the state governments to allow setting up of such stores. The Cabinet has also cleared FDI in aviation and broadcast sectors. In another major decision, the government also cleared FDI in aviation by foreign carriers. FDI in aviation will help troubled companies like Kingfisher, Spicejet and Go Air The move signals the end of policy paralysis in the UPA government. The government has, however, left the option to invite multi-brand retail on the states. The Government approved the disinvestment of 5 Public Sector Units ( PSUs), including Oil India (10%), Nalco (12.5%) and Hindustan Copper (9.59%) The government had last year cleared 51% FDI in multi-brand retailers for cities with populations of more than a million. But it later rolled back the decision after protests by allies of UPA and opposition.