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Swedish furniture retailer IKEA’s proposal to set up shop in India will come up for clearance with the nodal agency Foreign Investment Promotion Board on Tuesday.
IKEA plans to invest Rs 10,500 crore in setting up 25 single brand retail stores through its 100 per cent subsidiary.
While the retailer had earlier voiced concern about the sourcing clause, it decided to go ahead with the investments after the Government relaxed the 30 per cent sourcing clause from small and medium enterprises.
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.
This would be the largest investment in the single-brand retailing since the Government allowed foreign investment in this sector in January.
The other proposal which is likely to come up for hearing includes Berggruen Real Estate’s proposal to invest in the realty sector.
Billionaire investor Nicolas Berggruen, founder and President of Berggruen Holdings, is keen to invest in realty, car rentals and education sectors among others.
bindu.menon@thehindu.co.in
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