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FIPB decision on IKEA FDI proposal likely today

PTI  New Delhi, November 19, 2012
First Published: 22:12 IST(19/11/2012) | Last Updated: 22:13 IST(19/11/2012)

The finance ministry is likely to take a decision on Swedish furniture major IKEA's Rs. 10,500-crore investment plan, the largest FDI proposal in single-brand retail so far, on Tuesday.

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IKEA's proposal to set up 25 stores in India is listed on the agenda of Foreign Investment Promotion Board (FIPB), which will meet to consider 27 FDI proposals.

The proposal has already been scrutinised by the Department of Industrial Policy and Promotion (DIPP) in the commerce and industry ministries.

After FIPB's nod, it will have to be cleared by the Cabinet Committee on Economic Affairs (CCEA) as the board can only clear investment applications worth up to Rs. 1,200 crore.

The FIPB in its last meeting had cleared three single brand FDI proposals: British footwear retailer Pavers England, American luxury clothing retailer Brooks Brothers, and Italian jewellery-maker Damiani.

IKEA's would be the largest investment in single-brand retailing since the government allowed foreign investment in this sector.

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