The Foreign Investment Promotion Board (FIPB) on Monday sought more information from Swedish furniture maker Ikea regarding its investment plans in India.
The proposal will now be taken up by the board next week for reconsideration, a senior government official said. “No decision was taken today. More information has been sought and Ikea’s proposal will be taken up next week,” Arvind Mayaram, economic affairs secretary, said after the FIPB reviewed the application of the company.
Earlier, sources said Ikea had asked for a review of FIPB’s November 20 decision, which cleared only some categories of products from the total 33 the company had applied for.
The board had found overlaps between categories. The company, after cleaning up the “bona fide mistakes” applied afresh to sell products that include textile products, consumer electronics, leather products and lifestyle products, besides food and beverages to be served at its restaurants and cafetarias.
The FIPB had given a go-ahead to Rs 4,200 crore investment of company and had recommended sending it to the Cabinet Committee on Economic Affairs for the final approval.
After the FIPB approval, the company sent a representation to the Department of Industrial Policy and Promotion (DIPP) for a review. DIPP has supported the company’s proposal asking FIPB for a review.
Ikea has over 300 stores in some 40 countries around the world. The FIPB considered a proposal from Ingka Holding Overseas BV, Ikea’s parent company, to set up a wholly-owned subsidiary to undertake single brand retailing of its products.
The company plans to invest Rs 10,500 crore in single-brand retail and set up 10 furnishing and homeware stores along with allied infrastructure in over 10 years in India.