DIPP for speedy action on pending single-brand FDI proposals

The Department of Industrial Policy and Promotion (DIPP) has set a maximum deadline of 90 days

to take action on all FDI applications pending with it under single-brand retail. As per insiders, as many as 13 applications including that from foreign retailers like Forever 21, Furla and Swarovski, to open single-brand company-owned stores in the country are pending with the DIPP for several months. With the new time frame set by the body, it is expected to process and forward all complete and compliant applications to the foreign investment promotion board (FIPB) within 20 days for clearance. And the incomplete applications would be sent back to applicants within the same timeframe for submitting a complete and rectified application within 30 days.

If an applicant does not respond within a month, it will be given a final 20 days' time to comply with all requirements, and the completed application forms will be sent to FIPB within 20 days.

While Italian brand Furla that applied in March 2013 continues to wait for the proposal to be sent to FIPB, some other like Swarovski, Damro, Barausse, Austria Puma, Richemont (Holland), Forever 21, Montblanc, Lush and Credo Brands proposals are still being processed by DIPP. All these proposals, except for Lush were made in 2013. Bestseller applied in March this year to open single-brand outlets under Vero Moda, Only and Jack & Jones brands, which is also pending with the department.

To expedite the process of clearing investment proposals, the Ministry of Commerce and Industry has prescribed a new format for submitting applications before the Foreign Investment Promotion Board (FIPB). A foreign investor, interested in applying will now have to provide separate details about its joint venture partner. Foreign single and multi-brand retailers will have to present documents to show that the brand which they propose to sell in India is an international brand.