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The Foreign Investment Promotion Board has approved Swedish furniture retailer IKEA’s proposal to set up signature cafeterias at its outlets in the country.
This sets the stage for the Cabinet to give the plan its final nod when it meets next.
“The Government is committed to play a constructive role in encouraging FDI, especially in areas which create jobs and provide technological advancement,” Commerce and Industry Minister Anand Sharma said after the Foreign Investment Promotion Board (FIPB) meeting on Monday.
IKEA plans to invest Rs 10,500 crore in 25 single-brand retail stores through its 100 per cent subsidiary and has got FIPB’s approval to invest Rs 4,200 crore.
The company’s plans of setting up cafeterias at the stores had, however, hit a roadblock as the Government was not clear about the format of these stores.
“The fresh proposal forwarded by the Department of Industrial Policy and Promotion to the FIPB this time clearly laid down that the cafeteria would be a service that IKEA would provide its clients. The FIPB does not have a problem with that,” the official said.
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