Sources said the clarification on Congress president Sonia Gandhi's letter to Prime Minister Manmohan Singh was sent by the department of industrial policy and promotion much before the letter "surfaced" in the media.
They said all the issues raised in Gandhi's letter have been addressed. In the letter, Congress had said the government should first study the impact of transnational super markets on livelihood security of those engaged in small scale operations, before taking further decisions on FDI in retail.
In its reply, the DIPP has said Bharti has clarified about its memorandum of understanding with Wal-Mart, according to which the world's largest retailer would help the Indian partner in back-end infrastructure.
Commerce and Industry Minister Kamal Nath had also said on Wednesday that the clarification on more than a month old letter has been sent.
"The PMO had asked for details on FDI policy in retail and we have sent our comments," he said.
He said as per the existing policy, FDI in retail is not allowed and no FDI agreement has been signed by anyone. "What is the fuss all about," Nath asked.
The government regulations allow 100 per cent FDI in cash and carry through automatic route and 51 per cent in single brand. Besides, the franchise route is available for big operators.
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