Ikea proposal will be taken up soon: Sharma

Written by fe Bureau | New Delhi | Updated: Nov 9 2012, 07:19am hrs
The government will soon clear the proposal of Swedish home furnishing major Ikea, which has sought approval to invest R10,500 crore to set up single-brand retail stores in the country.

A few big proposals like Ikea are in the pipeline and will be approved. It is just a matter of days when the meeting will take place. They will all go through, said commerce and industry minister Anand Sharma at the World Eoconomic Forum on Thursday.

The Department of Industrial Policy and Promotion (DIPP) is scrutinising Ikeas application and which will then be taken up by the Foreign Investment Promotion Board (FIPB) on November 19. The policy is now cast in stone and can't be disturbed. If the political opposition thinks we will go to them with a proposition, then we will not. We are an elected government, Sharma said when asked about the delay in the reform measure.

The furniture giant proposes to invest in single-brand retail trading in India through a 100% subsidiary and open 25 stores over a period of time the largest investment in single-brand retailing since the government allowed foreign investment in this sector in January.

After FIPB's clearance, the proposal will have to be finally approved by the Cabinet Committee on Economic Affairs (CCEA) as the board can clear investment applications worth up to R1,200 crore only.

With the government relaxing the mandatory 30 % sourcing clause from small and medium enterprises in September, Ikea, which had earlier expressed concerns over the issues, filled in its final application earlier this month.