IKEA's Rs 10,000 cr proposal cleared

"IKEA case has been cleared by Foreign Investment Promotion Board (FIPB) and will now be placed before Cabinet Committee on Economic Affairs (CCEA) for final approval," a source said.

"Yes," Commerce and Industry Minister Anand Sharma said when asked if IKEA's proposal has been cleared in toto.

After CCEA's nod, IKEA would be able to open cafeterias at its proposed retail outlets.

Sharma said the decision will "resonate not only in Davos but in the all major countries of the world".

"It sends a clear message that India is very serious in ensuring that whatever policy initiatives we have taken they are implemented in letter and spirit and also to create confidence among the global investors that India has the welcoming environment for FDI," Sharma said.

The FIPB was earlier scheduled to take up the IKEA case on January 24, but the meet was advanced so that it could be cleared before the Indian delegation leaves for Davos.

The approval will prevent the possibility of tough questions which the officials and ministers might have had to face at the meeting of the global corporate leaders.

IKEA in a statement said: "We consider this as a very positive development. We are now awaiting for approval from the Cabinet and subsequently a notification so that we can initiate the process of establishing IKEA stores in the country."

Earlier, IKEA was given permission to invest only Rs 4,200 crore. However, following only a part approval to its investment plans, the company took up the issue with industry department that in turn asked the Board to reconsider the decision. (MORE)