FIPB can clear investment proposals worth up to Rs.1,200 crore.
As IKEA’s planned investment is higher than this, the proposal has to be cleared by the Cabinet.
CCEA will now have to a clear the total proposals of Rs.10,500 crore of the Swedish company which includes stores and cafeterias.
“It (IKEA’s proposal) will go to the CCEA,” he told reporters after the India-UK CEO Forum meeting in New Delhi.
Asked about a tentative timeline for the CCEA approval for the proposal, Sharma hoped it would be taken up soon.
The Rs.10,500 crore investment proposal in India through IKEA’s 100% owned subsidiary is for opening 25 retail stores across the country.