'Wal-Mart India plans may be at final stage'

Updated: Aug 31 2013, 05:04am hrs
Wal-mart is expected to soon firm up its plan to enter Indias multi-brand sector, a top government official said on Friday. Walmart Asia chief Scot Price called on Department of Industrial Policy and Promotion secretary Saurabh Chandra. Despite the recent clarifications put out by the government, Wal-Mart is said to have concerns over the mandatory sourcing from the SME sector. We have pointed out to them that that they can source from large cooperatives, said a senior official.

The official said that Walmart also sought clarification about e-commerce in multi-brand retail as it forms a part of the their plan. As of now the government has not allowed multi-brand retail through e-commerce.

Price declined to comment after an hour-long meeting. The Walmart chief attended the meeting with two of his team members.

Walmart has been seeking a series of clarifications from the government over the conditions for FDI in India's multi-brand segment. It had in July expressed its inability to the government on meeting an earlier sourcing norm that required 30% procurement from small industries. It had said it can procure only about 20%.

Subsequently, earlier this month the government had diluted the contentious sourcing clause allowing global multi-brand retailers to source 30% of their products from small and medium enterprises only at the time of start of business.

Besides, they have also been allowed to set up stores in cities with less than 10 lakh population.