Cabinet to take up retail FDI today

CCEA will consider allowing 51% in "single brand" retail trade.

As the first step towards the opening up of retailing to foreign direct investment, the Cabinet Committee on Economic Affairs will consider allowing 51 per cent in "single brand" retail trade tomorrow.

The proposal is part of a comprehensive policy that is slated to be taken up by the CCEA, which includes removing real estate, agriculture and plantation, potable alcohol, industrial explosives and hazardous chemicals from areas off limits to FDI.

A note prepared by the Department of Industrial Policy and Promotion says the "single brand" will be indicated as a permissible activity and "retail trade" will be deleted from the ban list.

While 49 per cent in retailing ventures will have to be held by the Indian partner, only brands sold under one name internationally will be allowed.

The note has been prepared on the recommendations of a group of ministers on FDI headed by Agriculture Minister Sharad Pawar.

The CCEA will also consider FDI through the automatic route for wholesale trading, greenfield airports, coal and lignite mining for captive consumption, processing and warehousing in coffee and rubber and power trading.

The proposal also includes allowing FDI through the automatic route for infrastructure related to marketing of natural gas and LNG pipelines.

A proposal for FDI through the automatic route for exploration and mining of diamonds and precious stones is also on the agenda. Rationalising the existing norms in wholesale trading and trading and sourcing for exports are also part of the policy being considered.