The government has received six proposals, including that of Tommy Hilfiger, Promod and Damiani, for single-brand retail trading with up to 51% foreign equity participation, Parliament was informed today.
Besides, two proposals - Pavers England and IKEA Group - have been received for 100% foreign direct investment (FDI) in single brand retail, Commerce and Industry Minister Anand Sharma said in a written reply to the Lok Sabha.
"No decision has been taken on these proposals," he said.
"... Six proposals (from Fapa Company, Samoa; Promod SAS, France; Tommy Hilfiger, The Netherlands; NA Pali Europe SARL; Brooks Brother Group, USA and Damiani International, The Netherlands), have been received for single brand retail trading with up to 51% foreign equity participation," he said.
In January this year, India hiked the FDI cap in single-brand retail to 100% from 51%.
Following this, UK-based shoe company Pavers England and Swedish home furniture major IKEA have expressed their interest to enter the lucrative sector. IKEA has proposed to invest Rs 10,500 crore to set up single-brand retail stores in India.
Till May, the total FDI equity inflows in the single brand retail trade are meagre Rs 204.07 crore.
To another question, Minister of State for Commerce and Industry Jyotiraditya Scindia replied that the chief ministers of Maharashtra, Assam, Haryana, Uttarakhand, Andhra Pradesh and Jammu and Kashmir through their press statements have publicly endorsed the policy (allowing 51% FDI in multi-brand retail) and have asked for its implementation.
"The states of Delhi and Manipur and the Union Territory of Daman & Diu and Dadra and Nagar Haveli, have expressed support for the policy in writing," Scindia said in a written reply to the Lok Sabha.
The Union Cabinet had decided on November 24, 2011, to allow 51% FDI in multi-brand retail, but the same could not be implemented in the face of strong opposition from UPA-ally Trinamool Congress and several state governments.
In the backdrop of the government facing flak from a section of industry and some global investors for policy inaction, the government has renewed its efforts to forge a consensus on opening the retail sector estimated to be over USD 600 billion.
In an another reply, Scindia said FDI for brownfield (that is investments in existing companies), in the pharmaceuticals sector, has been placed under the government approval route, owing to concerns arising out of the recent acquisitions of Indian drug companies by multinational firms.
