Investment board clears IKEA's Rs 10,000-crore proposal

Swedish furniture major IKEA's Rs 10,500 crore investment, which also includes proposal for setting up cafeterias at its retail outlets, has been cleared by the Foreign Investment Promotion Board (FIPB).

Now, the proposal will need approval from Cabinet Committee on Economic Affairs.

FIPB had earlier approved Rs. 4,200 crore out of a total of Rs. 10,500 crore investment proposal by IKEA to open single-brand retail stores in India with only some categories of products allowed to be sold from a total of 33 that the company had applied for.

Following the part approval, the company made a representation to the industry department, which forwarded the request to FIPB seeking review.

The issue was listed on the agenda of the last meeting of FIPB held on December 31.