Bangalore: Bangalore International Airport Ltd. (BIAL) has said that its plan to set up retail and duty-free outlets at the international airport with strategic partners will be in line with government regulations on foreign direct investment (FDI) in the retail sector.

Scotching speculation that its recent tender on retail and duty-free outlets would allow "backdoor entry" to global players by circumventing the government guidelines on FDI in the retail sector, BIAL has sought to distinguish between international departures (duty-free) and domestic departures where the private operator has shortlisted several entities to set up retail and duty-free outlets.

Stephan Widrig, chief commercial officer, BIAL, explained that duty-free at an airport meant that after check-in and immigration and security clearance, passengers could shop internationally.All major international players in the field have been shortlisted for the retail tender on international departures. These include the Nuance Group/Shopper's Stop, DFS Group, Dufry International, Alpha Airports Group and Gebr Heinemann/Oberoi Group. For the retail tender on domestic departures, BIAL has shortlisted a combination of foreign and domestic players in line with the government regulation on allowing FDI in single-brand retail, Mr. Widrig said. Alpha Airports has already applied to the Foreign Investment Promotion Board (FIPB) seeking its permission to develop travel, retail and food catering businesses in airports across the country.

The exact percentage of FDI in single-brand retail and the quantum of equity to be held by the local and foreign partners would depend on what is allowed by the Government at the time of signing the deal.

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