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Bengal government on brink as Foward Bloc threatens pull-out over Metro news
27 September 2008

Buddhadeb BhattacharjeeMumbai: Trouble never seems to end for West Bengal chief minister Buddhadeb Bhattacharjee. Just as  the beleaguered chief minister is planning a last-ditch effort to prevent Tata Motors' exit from Singur, coalition partner Forward Bloc has threatened to pull-out of the government over the issue of licence issued to German retailer Metro Cash & Carry to start wholesaler operations in Kolkata.

Left Front constituent Forward Bloc, which runs West Bengal's agriculture marketing board, today rejected the proposal to renew the Agricultural Produce Marketing Committee (APMC) licence for Metro Cash & Carry.

However, to prevent Metro's exit from the state, the chief minister has instructed South 24 Parganas' district magistrate to issue the APMC licence. Metro's outlet in Kolkata falls under the jurisdiction of South 24 Parganas.

Bhattacharjee's decision has upset the Forward Bloc, which met today to protest. "Bhattacharjee cannot take these decisions without discussing it with us. From Monday, our ministers will not go to Writers' Buildings till the chief minister's letter is withdrawn," said Ashok Ghosh, general secretary of All India Forward Bloc (AIFB).

Earlier in the day, Bhattacharjee and Asim Dasgupta, finance minister, had appealed to the Forward Bloc to renew the licence. But Ghosh rejected their requests .

Metro had announced plans to open four cash and carry centres in Kolkata at an investment of about Rs564 crore, employing 1,400 directly and 600 indirectly.

The state had issued the APMC licence to Metro Cash & Carry in 2006, valid till March 2008, because the company had explained that it is a business-to-business wholesaler.

Many small and medium traders already supply to hotels, restaurants and hospitals and Metro's entry would hurt their businesses, said Ghosh.

Metro Cash & Carry has invested Rs 140 crore in Kolkata and has employed 350 people. Metro says it is ready with infrastructure, spread over 100,000 sq ft, on the Eastern Metropolitan Bypass.

Metro's APMC licence was withdrawn by the APMC authorities even as the company had had to stop construction owing to a stay order for eight months over a legal dispute between former land owners and the government, which did not directly involve Metro.

The CPI(M) and Forward Bloc will meet on September 28 to decide the issue.


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Bengal government on brink as Foward Bloc threatens pull-out over Metro