Metro Cash & Carry has so far invested Rs.140 crores (UDS 30 million) in Bengal and plans to pump in another 420 crores (USD 120 million) in wholesale and retail marketing of farm produce like vegetable, fish etc. The four-store project is likely to generate 1400 direct jobs. But the fate of the project has been hanging in balance as Forward Block, a left partner in Bengal government overseeing farm sector, has refused to grant license to foreign big-players in the agri-business. The state secretary of Forward Block, Ashok Ghosh said on 25th September’08, “We wont allow German or any other foreign players in agri-product business, be it retail or wholesale, as that would snatch away jobs from small and intermediate traders.”
Reacting to the situation, Gunter Wehrmann, the German consul general in Calcutta, said at a press briefing, “If Metro Cash & Carry does not get the required license, it will be a death knell for any future German investment not only in Bengal but the entire eastern region (of India).”
The Consul-General also said that they were watching the events in Singur (Tata Nano) and Metro Cash & Carry ‘very very closely’ and will go elsewhere if serious problems are faced in setting up business here (Bengal).
Meanwhile Metro Cash & Carry has decided to wait until Sunday (28th Sept’08) when CPM and Forward block meets to ‘evaluate’ options and take a decision in the matter to decide the fate of not only Metro Cash & Carry, but of Reliance fresh, More, Keventer Fresh and others who either have been prevented from opening business or whose stores have been vandalized by political workers.
Incidentally Keventer Fresh, which sells farm produce to Reliance Fresh outlets and intending to be suppliers to Metro Cash & Carry, has filed 12 writ petitions in Calcutta High Court against Agri-marketing committee of the state for sitting on its license applications.