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FIPB Clears IKEA's Rs 10,000-Cr Investment Proposal

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The Foreign Investment Promotion Board (FIPB) has approved Swedish retailer IKEA's Rs 10,000-crore plan to set up shop in the country, the trade minister said in a statement late on 21 January 2013.

The finance ministry had previously ruled that the world's largest furniture maker would not be allowed to sell items such as food, textile products and office supplies, as it does in other markets.

However, the company had resubmitted its investment proposal and a government source with direct knowledge of the matter told Reuters that the Swedish retailer's investment plan had been approved in its entirety.

In one of the biggest FDI proposals, IKEA plans to invest about Rs 10,500 crore. It has received green signal for pumping Rs 4,200 crore.

On 17 January, 2013, Commerce and Industry Minister Anand Sharma, whose ministry formulates FDI policy, had expressed hope that the Board would clear IKEA's proposal to set up cafeterias at its single-brand retail outlets.

"We have cleared it (IKEA proposal). I have no reason to doubt because there were certain clarifications which were required. We are satisfied and accordingly DIPP has conveyed the same and forwarded it with its recommendations for the final approval," Sharma had said.

The board kad earlier recommended permission to IKEA to invest Rs 4,200 crore for opening single-brand retail stores.


(Agencies)