Rajasthan, one of twelve states that had initially given the go-ahead for FDI in multi-brand retail, has now revoked the approval, says a report.
The Vasundhara Raje led BJP government has scrapped the approval given previously by Ashok Gehlot of the Congress government. According to a PTI report, the Chief Minister Raje has already written a letter reversing the decision to Commerce Minister Anand Sharma.
Rajasthan is the second state after Delhi to pull the plug on the approval given on FDI in multi-brand retail. This is also the second state to reverse the approval after a change in Government took place in the recent elections.
India had relaxed retail FDI norms in September 2013 to allow foreign ownership of multi-brand retail in India. However, a final decision had been left to the State Governments.
The Department of Industrial Policy & Promotion is now consulting various stake holders to finalize on the FDI norms in retail. Final FDI rules are likely to be announced in March 2014.