Foreign multi-brand retailers will not require permission from State Governments for opening shops, if the recommendations of the Committee of Secretaries (CoS) find their way.

Recommendations

The committee, which cleared the way for foreign direct investment in multi-brand retail last week, has given 10 recommendations. These will now be part of the draft Cabinet note.

The committee has also proposed that retailers should be allowed to sell unbranded goods. Sources told Business Line that the committee has further recommended examination of the proposal to outsource at least 30 per cent manufactured goods from Micro, Small and Medium Enterprises (MSME), in the context of multi-lateral agreements such as the World Trade Organisation (WTO).

Sources said, the committee has suggested that multi-brand retail could be allowed initially only in cities with a population of 10 lakh or more. However, if the retailers are unable to find space in such a city, they may be allowed to set up shop within 10-kilometre radius.

The committee, last week, suggested that FDI of up to 51 per cent should be allowed in the multi-brand retail. The FDI retailer could be asked to put up at least 50 per cent of the FDI in back-end infrastructure.

>Shishir.s@thehindu.co.in