The much-awaited Swedish retail IKEA’s Rs 10,500-crore proposal to set up single brand retail stores in the country is expected to be taken up by the Cabinet Committee on Economic Affairs (CCEA) on Wednesday.
“The IKEA’s proposal is listed for tomorrow’s CCEA (meet),” a source said.
Earlier in January, Foreign Investment Promotion Board (FIPB) had cleared the investment plan of the firm to open single-brand retail stores in the country.
FIPB can clear foreign 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.
The CCEA will now have to clear the Rs 10,500-crore proposal of the Swedish company that includes stores and cafeterias.
In its application, IKEA had proposed to invest the amount for setting up 10 furnishing and homeware stores as well as allied infrastructure over 10 years in India. Subsequently, it plans to open 15 more stores.
IKEA’s would be the largest investment in the single-brand retailing ever since the government has allowed foreign investment in this sector. The company has been sourcing many products from India for the past 25 years.