Commerce and industry minister Anand Sharma has written to the chief ministers of three opposition-ruled states Uttar Pradesh, Orissa and Punjab for their support to allow 51% foreign direct investment in multi-brand retail. Sharma has also proposed to meet them personally to discuss the issue.

?The Indian consumer will undoubtedly gain significantly from this step (FDI in multi-brand retail) as they will be afforded much greater choice, better quality and lower prices,? Sharma wrote. He also said that the policy initiatives taken in larger national interest demand political leadership to ?rise above partisan politics? to create a healthy bipartisan consensus on multibrand retail.

In November last year, the Cabinet allowed FDI up to 51% in multi-brand retail and 100% in single-brand retail. However, it was forced to hold the decision on multi-brand retail due to immense pressure from the opposition parties as well as allies, although it went ahead with the plan to raise foreign investment in single-brand retail from 51%.

Sharma said that concerns have been expressed that the multinational companies will resort to predatory pricing techniques to drive away small retail. However, there is competition commission in the country to ensure that such practices receive great scrutiny.

Sharma said opening up FDI in multi-brand retail will bring in much needed investments, technologies and efficiencies to unlock the true potential of the agricultural value chain. The policy mandates minimum investment of $100 million with at least half going towards back end infrastructure including cold chains, refrigerated transportation and logistics.? It will also unfold immense employment opportunities for rural youth and make them stakeholders in the entire agri business chain from farm to fork,? he said.

Meanwhile, Sharma on Thursday met Germany-based Metro Group chairman and CEO Olaf Koch to discuss India?s commitment to permit FDI in multi-brand retail trading. Metro AG is the fourth largest retailer in the world after Wal-Mart, Carrefour and Tesco.