Government is likely to clear IKEA's proposal to open cafeterias at its proposed mega retail outlets when the Foreign Investment Promotion Board (FIPB) reviews the Swedish furniture major's request on Monday.
The FIPB, headed by economic affairs secretary Arvind Mayaram, has
already allowed IKEA to invest Rs.
4,200 crore to undertake single brand retailing of its products.
Following a representation from the Swedish firm, the department of industrial policy and promotion (DIPP) had recently forwarded a request to FIPB for reviewing its November 20 decision giving only part approval to IKEA's plan.
"Review the request of DIPP" regarding IKEA is on the FIPB agenda, sources said.
Batting for IKEA's proposal, commerce and industry minister Anand Sharma had recently said that government has taken a favourable view on IKEA's request.
"All the stores globally whether IKEA or some other single brand retailers, where people shop for long time... There are cafeterias inside.
"The government has taken... note of the representation that IKEA has made in this regard and a favourable view has been taken so that we accept their global model and the process of FIPB's formal approval is currently underway," he had said.
Sources said that besides furniture, the Scandinavian firm in its original application had sought government approval to sell items such as textile products, consumer electronics, leather products, lifestyle products, and food and beverages to be served at its restaurants and cafe.
The company had envisaged an investment of Rs. 10,500 crore in single brand retail trading after India allowed 100% FDI in the segment.
IKEA, the world's largest furniture retailer, operates 336 stores in 44 countries.
It plans to set up 10 furnishing and homeware stores as well as allied infrastructure over 10 years in India. Subsequently, it plans to open 15 more stores.
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