IKEA official calls on Sharma
New Delhi: With the CCEA likely to take up Swedish retail IKEA's Rs 10,500-crore proposal on Wednesday, India country manager of the firm Juvencio Maeztu today met Commerce and Industry Minister Anand Sharma.
According to sources, Maeztu discussed about the company's plan with Sharma.
The Cabinet Committee on Economic Affairs (CCEA) is likely to consider the Swedish home furnishings retailer investment proposal on Wednesday, they said.
Earlier in January, Foreign Investment Promotion Board (FIPB) had cleared the investment plan of IKEA 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. IKEA has been sourcing many products from India for the past 25 years.