The government will tomorrow discuss with retailers, including Walmart, Tesco and Carrefour issues faced by them in setting up of stores in the country’s multi-brand retail sector.
“We will discuss issues like what are the impediments global retailers are facing in India. Although we have issued several clarifications, if some more things need to be clarified we will do that. We can also approach the Cabinet for that,” a senior official in the DIPP said.
The meeting between the government and retailers assumes significance as there has not been a single major foreign investment in the multi-brand segment, even after 10 months of allowing up to 51 per cent FDI in the segment.
Apart from the three big players Walmart, Tesco and Carrefour, representatives of companies Metro, Costco, French hypermarket major Auchan and CEOs of Indian retail majors such as Aditya Birla Group, the Tatas, Reliance, Rahejas, Pantaloon and the RPG Group are expected to take part in the meeting.
Carrefour India MD Jean Noel, Tata Trent CFO P Venkatesalu, Pantaloon Retail Chairman Kishore Biyani, Landmark Group MD Vinai Singh, Aditya Birla Retail CFO Atul Daga are likely to attend the meeting.
Although the Department of Industrial Policy and Promotion (DIPP) came out with clarifications on June 7 on queries from global retailers, foreign players have asked to clarify some more grey areas like allowing FIIs in the sector and a cap on the minimum investment in back-end infrastructure.
Other matters which may be discussed during the meeting include requirement of 50 per cent of investment in ‘back-end infrastructure’ within three years of the first tranche of FDI, sourcing restriction among ‘group companies’.