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May 30, 2013, 09.58 PM IST | Source: CNBC-TV18

Global retail giants submit FDI queries to DIPP

CNBC-TV18's Nayantara Rai and Rituparna Bhuyan report, quoting sources, that Carrefour and Sainsbury have raised specific queries regarding FDI in multi-brand retail sector and commerce minister Anand Sharma has promised to answer and provide clarifications to these queries

FDI in multi-brand retail sector continues to elude India as foreign companies seek numerous clarifications on the government's FDI policy.

CNBC-TV18's Nayantara Rai and Rituparna Bhuyan report, quoting sources, that Carrefour and Sainsbury have raised specific queries regarding FDI in multi-brand retail sector and commerce minister Anand Sharma has promised to answer and provide clarifications to these queries.

Also Read: DIPP to shed more light on multi-brand retail FDI policy

French retailer Carrefour has sought clarifications on 12 key questions from the department of industrial policy and promotion (DIPP) main points. These include:  What will be the impact on Carrefour's sourcing operations if some states do not allow FDI in multi-brand retail?  If Carrefour makes an investment of USD 100 million, will that commitment hold good even if all the states are not on board?

Carrefour, according to sources, has also sought for clarification on the allocation of investment for greenfield back-end operations and limits on warehousing and other allied activities like trucking.

Sources add that is very clear Carrefour is not going to increase its investment in India until it receives clarifications from the DIPP.

UK-based Sainsbury has also sought clarifications from the DIPP. And sources add that Sainsbury may not initially go in for front-end operations until it sets up its sourcing network in the country.

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