| Date: |
02-05-2011 |
| Subject: |
FDI in Multi-Brand Retail May Go To Cabinet After Poll Results |
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Industry Ministry's proposal to open multi-brand retail for foreign investment is likely to go to the Cabinet soon after assembly election results of four states and a Union Territory, taking on board job-related concerns of the Labour Ministry, sources said.
The Cabinet note, circulated by the Department of Industrial Policy and Promotion (DIPP) has a rider that foreign retail giants will have to invest a minimum of USD 100 million, half of which must go to the back-end infrastructure like cold storage, soil testing labs and seed farming.
In the event of the proposal getting approved, multi- national retailers like Wal-Mart, Carrefour and Tesco which have been awaiting the government's decision, would be allowed in cities with population of over one million (according to 2001 census).
As per this criterion, the foreign chains would be able to open shops in 36 cities only, sources said.
Source : indianexpress.com
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