FinMin to decide on IKEA's FDI proposal on November 20

Tags: FDI, Ikea, Retail
The Finance Ministry is likely to take a decision tomorrow on Swedish furniture major

RELATED ARTICLES

IKEA's Rs 10,500-crore investment plan, the largest FDI proposal in single-brand retail so far.

IKEA's proposal to set up 25 stores in India is listed on the agenda of Foreign Investment Promotion Board (FIPB), which will meet tomorrow to consider 27 FDI proposals.

The proposal has already been scrutinised by the Department of Industrial Policy and Promotion (DIPP) in the Commerce and Industry Ministry.

After FIPB's nod, it will have to be cleared by the Cabinet Committee on Economic Affairs (CCEA) as the board can clear investment applications worth up to Rs 1,200 crore only.

The FIPB in its last meeting had cleared three single brand FDI proposals. They were of British footwear retailer Pavers England to open fully-owned stores, a 51% joint venture of American luxury clothing retailer Brooks Brothers and Italian jewellery maker Damiani's plan to form a venture with Mehta's Pvt Ltd.

The IKEA Group, which manufactures and sells home and office furnishing products, proposes to invest in single-brand retail trading in India through a 100% subsidiary.

This would be the largest investment in the single-brand retailing ever since the government has allowed foreign investment in this sector in January.

With the government relaxing the mandatory 30% sourcing clause in September, IKEA which had earlier expressed concerns over the issues had filled its final application earlier this month.

The other items on the agenda of the meeting include proposals of Bharat Electronics Ltd, Multi Commodity Exchange of India Pvt Ltd, Mahindra and Mahindra Ltd, OCS Group Singapore Pte Ltd, Singapore; and InterCall Asia Pacific Holdings Pvt Ltd, Singapore.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The budget is sound in logic; the market is too clever by half

    For a man derided by former finance minister P Chidambaram for his knowledge of economics as only sufficient to be scribbled on the back of a postage

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Arun Nigavekar

Why higher education needs innovation

India is such a great country that it creates complexity ...

Zehra Naqvi

We must overcome the fear of death

It is the biggest irony that the only thing that’s ...

Dharmendra Khandal

Jawai leopards and locals can coexist peacefully

At first glance, the Jawai landscape seems like a large ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture