DIPP asked to clarify rules on FDI retail in Walmart probe

The sticking point of local sourcing surfaced again on Friday with UK's leading retailer Tesco Plc seeking clarifications regarding sourcing norms for foreign direct investment (FDI) in retail.

Tesco chief executive officer Philip Clarke and managing director of Tata International Noel Tata met commerce minister Anand Sharma here. Tesco had entered into a partnership with Tata Group firm Trent in 2008 for providing back end support to the latter. "There will be important points of clarification in months ahead and you will hear more from us then," Clarke told the media. Sharma said, "I am sure that there are no issues which will come in way for them to take a positive decision on investing in India."

Meanwhile, the Enforcement Directorate (ED), which is probing alleged violations of forex laws by Walmart in its investment in two Indian firms, has asked the Department of Industrial Policy and Promotion to clarify rules governing FDI in the multi-brand retail. ED is probing alleged contravention of forex rules under provisions of Foreign Exchange Management Act on directions of the Reserve Bank of India.

Courtesy: Mail Today