The Cabinet Committee on Economic Affairs (CCEA) is likely to take up Swedish home furnishings retailer IKEA’s Rs.10,500 crore investment proposal soon, commerce and industry minister Anand Sharma said on Tuesday.
Though the world’s largest furniture maker had received the FIPB
approval earlier, this as well as fresh proposal from the Swedish retailer that was subsequently cleared will have to be approved altogether.
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.