Govt mulls legislation to curb MNCs entry in retail sector

Thiruvananthapuram, July 10 (UNI) The Kerala Government is seriously examining a proposal to enact a legislation to curb the entry of multinationals and big corporate houses in the retail sector, Food and Civil Supplies Minister C Divakaran told the Assembly today.

Replying to a calling attention motion, the Minister said local bodies would be directed to re-examine the licences already issued to the Reliance and others to operate outlets in Ernakulam, Palakkad, Thrissur and Thiruvananthapuram districts.

Besides, the state government would also exert pressure on the Centre to take a policy decision in this matter.

He said the entry of multinationals in the retail sector would adversely affect the livelihood of thousands of small scale shop owners in the state. Besides, it would also result in artificial scarcity of essential commodities.

Stating that the effective way to curb the threat was to strengthen the public distribution system, he said the Civil Supplies Department would open 'People's Bazars' in all districts.

Besides, hyper markets would be opened in selected centres.

The government was confident that it could resist the invasion of multinationals in the retail sector to an extend by strengthening the public distribution system and launching new initiatives.

''The functioning of about 14,000 ration shops and 2,500 outlets under the Civil Supplies Corporation would be streamlined and quality commodities supplied through such outlets.'' he added.

UNI