The finance ministry said on Saturday there is no dilution of the permission granted to Swedish furniture major Ikea to set up its business here, as the R10,500-crore investment proposal is limited to only single brand retailing.
“It is an incorrect understanding of the approval which has been given to Ikea. It’s a single-brand approval. So they can sell those items which they can brand,” economic affairs secretary Arvind Mayaram told reporters on the sidelines of the Asia Securities Forum meet that concluded in Mumbai.
Earlier this week, the Foreign Investment Promotion Board (FIPB) had reportedly halved the product range that Ikea listed out. This reportedly excluded items including textiles, office supplies and food, among others. Ikea has already received the approval from the Department of Industrial Policy and Promotion (DIPP). “Whatever they can brand, they have been permitted to,” Mayaram said, adding, “I think, their core activities have all been permitted.”
Meanwhile, Mayaram sought to underplay the bribery allegations against the US retail giant Wal-Mart’s domestic joint venture, saying the issue has been blown out of proportion and that the law will take its own course. “The law takes its own course, and if someone violates the law, suitable action will accordingly be taken,” he said.