CCEA likely to take up IKEA investment proposal soon: Sharma
Feb 19 2013 , New Delhi
Though the world's largest furniture maker had received the FIPB approval earlier, this as well as fresh proposal from the Swedish retailer that was subsequently cleared will have to be approved altogether.
FIPB can clear investment proposals worth up to Rs 1,200 crore. As IKEA's planned investment is higher than this, the proposal has to be cleared by the Cabinet.
CCEA will now have to a clear the total proposals of Rs 10,500 crore of the Swedish company which includes stores and cafeterias.
"It (IKEA's proposal) will go to the CCEA," he told reporters after the India-UK CEO Forum meeting here.
Asked about a tentative timeline for the CCEA approval for the proposal, Sharma hoped it would be taken up soon.
The Rs 10,500 crore investment proposal in India through IKEA's 100 per cent owned subsidiary is for opening 25 retail stores across the country.
The India-UK CEO Forum meeting was attended by Tata Group Chairman Emeritus Ratan Tata, Godrej Group Chairman Adi Godrej, ICICI Bank Chief Chanda Kochhar, ITC Group Chairman Y C Deveshwar, Standard Chartered CEO Peter Sands and Balfour Beatty Plc Chief Executive Officer Ian P Tyler.
The British business delegation is part of the entourage of British Prime Minister David Cameron, who is on a three-day visit to India.