No confrontation with PM on foreign retailers: Congress

New Delhi -- The Congress party which leads the ruling coalition Wednesday said it favoured adequate safeguards while opening up the retail sector to foreign investment even as it clarified there was no confrontation with the government over the issue.

Congress president Sonia Gandhi's letter to Prime Minister Manmohan Singh this week on the foreign direct investment (FDI) in the retail sector "should not be seen as either of the two extremes - of banning or stoppage of FDI altogether or allowing FDI without any safeguards," party spokesman Abhishek Singhvi told reporters here.

Gandhi, the chairperson of the ruling United Progressive Alliance (UPA), had written to the prime minister cautioning against allowing foreign retailers in the country without adequate safeguards, saying it would affect the existing small players.

"The spirit of the letter was that the Congress is with the common men and the government should put in place appropriate safeguards before such activities," Singhvi said.

He, however, ruled out that there was any confrontation between the party and the Prime Minister's Office. "It was not questioning (any decision), but was a constructive suggestion at the general level. Micro-level details will have to worked out by the government," he said.

According to Congress leaders, the party never discussed its stance on the FDI policy for the retail sector. "But Congress has made it clear its position now through none other than the party president."

Gandhi's letter has put a question mark on what was seen as imminent entry of foreign retail giants like Wal-Mart and Tesco to the Indian market.

The entry of foreign majors in retail has been a contentious issue with small traders and the Left parties campaigning against it.