Secretaries’ panel for 51% FDI in retail, but with riders
06 Aug 2011
There is reportedly some progress on the much-vexed issue of opening up multi-brand retail to foreign investment, a committee of top secretaries in various ministries forwarding 10 recommendations to the commerce and industry ministry on Friday.
"We have formally received the minutes of the Committee of Secretaries (CoS) meeting held on 22 July and an appropriate decision will be taken soon," an official told PTI anonymously. The ministry is examining it and would take the proposal before the cabinet soon, the official added.
Commerce and industry minister Anand Sharma had told the Rajya Sabha on 3 August that an early decision on opening the sector for FDI would be taken after he formally gets the recommendations.
The CoS headed by cabinet secretary Ajit Kumar Seth has said that 51 per cent foreign investment could be allowed in multi-brand retail, which is currently mainly the preserve of small privately-owned stores.
But the CoS has put suggested stringent conditions for foreign retailers, including a minimum investment of $100 million, mandatory investment of at least 50 per cent in back-end infrastructure, minimum sales of 30 per cent to come from small traders, and 30 per cent mandatory sourcing from small and medium enterprises.
The other recommendations include allowing such mega stores to sell non-branded items. Further, such entities should be allowed only in towns with a population of over one million.
