Moving a step closer to FDI in multi-brand retail: CoS
The Committee of Secretaries (CoS) recently pushed up the upper limit to 51% in the retail segment. According to the permit, foreign retailers will have to dedicate at least 50% of their proposed investment to back-end supply chain infrastructure.
August 17, 2011 / 12:52 IST
Expectations run high of foreign direct investment in multi-brand retail becoming a reality in India. The Committee of Secretaries (CoS) recently pushed up the upper limit to 51% in the retail segment. According to the permit, foreign retailers will have to dedicate at least 50% of their proposed investment to back-end supply chain infrastructure. They would further have to commit a minimum FDI of USD 100 million.
CNBC-TV18 has learnt that the Committee of Secretaries has now recommended a widening of the definition of "back-end" in which foreign retailers have to invest 50%. The secretaries have suggested the definition also include design improvement, quality control and packaging. Additionally, the CoS has suggested a relaxation in the monitoring of retailers investing in the back-end. As against the earlier proposal of RBI monitoring these investments, the secretaries have proposed self-certification by the investors. They say the accounts can be subsequently checked whenever required, but the investors must get a certificate from a chartered accountant. Also, the panel of secretaries says the government must have the first right to procurement of agricultural products.Did you miss? Allow FDI in multibrand retail in regulated fashion: IMG
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