On Board PM’s Special Plane: Swedish furniture major Ikea, which proposes to invest Rs. 10,500 crore to set up stores in India, has got Department of Industrial Policy and Promotion nod and its application is now with Foreign Investment Promotion Board, Commerce and industry minister Anand Sharma said on Sunday.
The Department of Industrial Policy and Promotion (DIPP), which is under the Commerce and Industry Ministry, has scrutinised the application of Ikea that wants to set up over 25 single-brand retail stores in the country over a period of time.
Specifically referring to Ikea’s proposal, Sharma said, it has been “approved by us, now it is with the FIPB.”
It will meet the parameters of the policy and all the conditionalities, he said while talking to journalists en route to Phnom Penh along with Prime Minister Manmohan Singh.
The FIPB, which will meet on 20 November , would take up the Ikea’s application.
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 Rs.1,200 crore only.
Sharma said: “In-single brand retail, major proposals have been cleared. The last FIPB had cleared three major proposals”.
These included that of British footwear retailer Pavers England Ltd 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.
On allegations of corruption involving Walmart, Sharma said, “allegations are allegations. In a rule-based and rule-governed country, if there is any violation there are agencies who are there to look into it.” PTI