Govt Clears 51% FDI In Retail, 49% In Aviation

Wounded UPA Takes On Allies, Oppn To Repair Economy, Retrieve Legacy From Paralysis To Frenzied Action New Delhi: After months of dilly-dallying, the UPA government on Friday mustered courage to boldly throw open the gates to foreign investment in a host of sectors considered political no-go zones like multi-brand retail and civil aviation in a bid to dispel the perception of policy paralysis.      The move will pave the way for the muchawaited entry of foreign retail giants such as Wal-Mart, Tesco and Carrefour into the $450-billion retail market, although their footprint      will be limited to million-plus cities in the states which have agreed to back the measure.      The decisions on Friday, along with a go-ahead for disinvestment in four public sector companies to mop up around Rs 14,000 crore, come within a day of the ruling coalition's move to raise diesel price by a stiff Rs 5 a litre and cap subsidized cooking gas cylinders at six a year for every household.      Taken together, they mark the most ambitious reforms rush by the beleaguered government headed by Prime Minister Manmohan Singh which has been roundly attacked in recent weeks for drift and diminished will to take bold measures.      Faced with dwindling political fortunes, the UPA government appears to have finally resorted to a flurry of actions that are aimed at salvaging its precarious finances and also retrieving the sinking reforms legacy of the regime.  Stake sale in 4 PSUs cleared      The Centre on Friday said it will sell stakes in four state-run firms—Hindustan Copper, Oil India, MMTC and Nalco — which is likely to help it raise up to Rs 14,000 crore. The Cabinet, however, did not take any decision on the divestment of Neyveli Lignite. P 24