The Cabinet Committee on Economic Affairs is likely to consider the Swedish home furnishings retailer IKEA's Rs 10,500 crore investment proposal next week.
New Delhi: The Cabinet Committee on Economic Affairs is likely to consider the Swedish home furnishings retailer IKEA's Rs 10,500 crore investment proposal next week.
Earlier in January, Foreign Investment Promotion Board (FIPB) had cleared the investment plan of IKEA to open single-brand retail stores in the country.
"Hopefully, the CCEA will take up the proposal next week," a top government official said.
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.
CCEA will now have to clear the total proposal of Rs 10,500 crore 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. IKEA has been sourcing many products from India for the past 25 years.