A Committee has been set up to examine appropriateness of procedures followed by the Department of Telecommunications in issuance of licences and allocation of spectrum during the period 2001-2009. The Committee will be chaired by retired Judge of the Supreme Court, Justice (Retd.) Shri Shivraj V. Patil. According to news reports the Committee is scheduled to submit its report by the first week of January 2011. The Terms of Reference (TOR) of the Committee have been listed as: 1. To study the circumstances and developments in the Telecom sector that led to the formulation of the New Telecom Policy 1999 and subsequently, introduction of 4th Cellular Telecom Mobile Service (CMTS) licence in 2001. 2. To examine the internal (intra-departmental) procedures adopted by DoT during the period 2001-2009 for: a. Issue of telecom access service licences, and b. Allocation of spectrum to all telecom access services licencees during the above period. 3. To examine whether these procedures were in accordance with existing policies and directions of DoT/Government. 4. To examine whether these procedures were followed consistently and if not, identify specific instances of: a. Deviation from laid down procedures; b. Inappropriate application of laid down procedures; c. Violation of underlying principles of laid down procedures. 5. To examine whether the procedures adopted were fair and transparent and were in keeping with the principles of natural justice and if not, identify the specific instances of lack of fairness and transparency. 6. To identify the deficiencies, if any, in the procedures as formulated and identify the public officials responsible for such deficiencies. 7. To identify the shortcomings and lapses, if any, in the implementation of the laid down procedures and identify the public officials responsible for such lapses. 8. To suggest remedial measures to avoid in future: a. Deficiencies in formulation of procedures; and b. Lapses in implementation of laid-down procedures.
After months of discussion, the issue of FDI in retail is being deliberated in the Lok Sabha today. In September 2012, the Cabinet had approved 51% of FDI in multi-brand retail (stores selling more than one brand). Under these regulations, foreign retail giants like Walmart and Tesco can set up shop in India. Discussions on permitting FDI in retail have focused on the effect of FDI on unorganised retailers, farmers and consumers. Earlier, the central government commissioned the Indian Council for Research on International Economic Relations (ICRIER) to examine the impact of organised retail on unorganised retail. The Standing Committee on Commerce also tabled a report on Foreign and Domestic Investment in the Retail Sector in May, 2009 while the Department of Industrial Policy and Promotion (DIPP) released a discussion paper examining FDI in multi-brand retail in July, 2010. Other experts have also made arguments – both in support of, and in opposition to, the move to permit FDI in retail sales. The table below summarises some of these arguments from the perspective of various stakeholders as collated from the above reports examining the issue.
| Stakeholder |
Supporting arguments (source) |
Opposing arguments (source) |
| Unorganised retail |
|
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| Farmers |
|
|
| Consumers |
|
|
Source: ICRIER [1. "Impact of Organized Retailing on the Unorganized Sector", ICRIER, September 2008]; Standing Committee [2. "Foreign and domestic investment in retail sector", Standing Committee on Commerce, May 13, 2009]; Singh (2011) [3. "FDI in Retail: Misplaced Expectations and Half-truths", Sukhpal Singh, Economic and Political Weekly, December 17, 2011]; Reardon and Gulati (2008) [4. "Rise of supermarkets and their development implications," IFPRI Discussion Paper, Thomas Reardon and Ashok Gulati, February 2008.]; DIPP [5. "Discussion Paper on FDI in Multi-brand Retail Trading", Department of Industrial Policy and Promotion, July 6, 2010]
