The Department of Industrial Policy & Promotion has cleared Swedish furniture maker IKEA’s proposal to set up cafeterias at its retail outlets in India and sent it to the Foreign Investment Promotion Board for approval, Commerce and Industry Minister Anand Sharma has said.
“We have cleared it (IKEA’s proposal). The DIPP has conveyed its views to the FIPB,” Sharma told reporters on the sidelines of a textiles fair organised by FICCI. The proposal is now expected to be taken up at FIPB’s meeting scheduled on January 21.
IKEA plans to invest Rs 10,500 crore in setting up 25 single brand retail stores through its 100 per cent subsidiary. The FIPB has already approved Rs 4,200 crore of the Rs 10,500 crore proposed but had not approved setting up of the company’s signature cafeterias at the stores.
A fresh proposal by Ingka Holding Overseas BV, IKEA's parent company, for opening up of cafeterias was withdrawn by the DIPP in FIPB’s last meeting on December 31 2012.
“There were some clarifications that were sought from the company. It has given its clarification. We are satisfied. Our views have been conveyed to FIPB,” Sharma said.
The FIPB meeting scheduled on January 18 has been postponed and will now be held on January 21 as Economic Affairs Secretary Arvind Mayaram will reportedly not be in town, a government official told Business Line.