FIPB likely to allow caf and dining establishments in its review of conditional approval on December 31.This New Year's eve might become special for the Euro 25billion Swedish furniture chain IKEA. It may well get a goahead for operating caf and restaurants in India, Additionally its furniture stores. In its next seminar, Appointed for December 31, The Foreign contribution Promotion Board (FIPB) Is set to review its conditional approval given to a lot more claims on November 20, It is discovered.

FIPB had last month recommended the core furniture business of IKEA for thought on the Cabinet Committee on Economic Affairs (CCEA), After striking off the chain's request for caf besides 18 other product sets of the 50 it had proposed for India. Even as IKEA had sought approval to pay Rs 10,500 crore, FIPB nod came for only Rs 4,500 crore. Employing a "Discussion, FIPB will require up the IKEA case again, With different "Request of the Department of commercial Policy Promotion, As per the board's agenda note for the yearend meeting.

Replying to a query on IKEA on the sidelines of a management meeting on Wednesday, Commerce world Minister Anand Sharma said: "IKEA has a global model as a singlebrand dealer. And after that, We have a clear concise explaination what we describe as singlebrand. We see no rationality why its global model, Once we have allowed 100 percent FDI in singlebrand retail, Have to be changed in any manner,

Pointing out that several large stores on the outskirts of cities had cafeterias because people shopped there a long time, Sharma said the costa rica government had taken a favourable view of the furniture chain's representation in accepting its global model.Ingka Holding to foreign countries, You company for IKEA's investment proposal, Recently sought government clarification and approval on the required categories of products it could sell in India to make the IKEA concept possible, According to a company representative. The company is learnt to have conveyed to the Indian government otherwise ready to compromise on the "Invention" It represented around the globe, Primarily with reference to its signature caf restaurants and meat balls sold there. IKEA, Which operated over 300 stores in 40 cities, Did not have outlets without the caf and restaurants in any market across the globe, A company manager said.

If FIPB revises its ideas on IKEA, By approving its caf and eateries, This will be the second instance of the us government paying heed to the company's concerns. Earlier that year, Government entities had relaxed the singlebrand retail FDI policy, By removing the health of 30 per cent mandatory sourcing from small and medium enterprises. The move had come after IKEA told the federal government it was not feasible to follow the singlebrand FDI norms with such rigid sourcing conditions.Skillfully developed argued the government had been rather flexible with IKEA as it was the first mega foreign investment proposal after the rules were relaxed.

Whilst the FDI limit for singlebrand retail companies was increased to 100 per cent from 51 per cent last year, Multibrand retail sector was opened up for 51 per cent foreign commitment in September. No price proposal has come from any multibrand retail chain yet. All pages of the Website are subject to our fine prints and privacy policy. You mustn't reproduce, Replicated, Backup, Exchange for cash, Resell or exploit any material one specific for any commercial purposes.

Leave a Reply.

The 19th China International Furniture Expo