Sources said Ikeas proposal will be delayed till an internal clarification is prepared by the department of industrial policy and promotion (DIPP) regarding the proposal that Ikea had sent earlier. DIPP had endorsed Ikea's fresh proposal seeking permission to do business in all the 30 categories it had initially applied for. However, the FIPB had struck down some 18 categories. Ikea was then asked to prepare a fresh proposal for these remaining 18 categories which it has submitted. The matter came up for review on December 31 before the FIPB and the board and sought further clarifications from DIPP.
"It was in the amended application, Ikea was suppose to reclassify, rename and merge some of the categories to suit Indian laws, which they did and the proposal was taken in the meeting of FIPB on December 31, 2012. FIPB had then asked DIPP for further clarifications," the source said. Ikea had estimated that if all clearances come in time then they would be able to set up its India operations by mid-2013.