CoS recommends 51 pc FDI

CoS recommends 51 pc FDI in multi-brand retail-A committee of govt secretaries on Friday approved opening up India's multi-brand retail sector to foreign direct investors, a major step towards opening the sector keenly watched by foreign retail giants.The committee recommended giving foreign firms the chance to take a majority stake of 51% in an investment. Global retailers such as Wal-Mart Stores, Carrefour, Tesco and Metro AG have long sought greater access to a fast-growing but restrictive Indian retail sector.The CoS meeting, attended by 10 secretaries, deliberated on the issue for nearly three-hours on Friday.It is understood to have rejected a proposal that stores with FDI should be asked to sell at least 30 percent of their goods to small retailers. A few secretaries favoured opening the sector for FDI up to 49 percent only, while the majority favoured 51 percent.The CoS recommendations came after about a year of the Department of Industrial Policy and Promotion (DIPP) floating the idea of opening the sector for FDI. While the CoS has given its recommendations, the Union Cabinet would have to vet it before FDI could be allowed into the sector. "This was probably the last meeting of CoS on the issue. Now it will go to the Cabinet," sources added.The DIPP would move the Cabinet note.Since large stores require huge space and if the same is not available, the CoS opined that the retailer should be allowed to open shop even within 10 km radius of cities with over one million population.India currently allows 51% FDI in single-brand retail and 100% in wholesale cash-and-carry operations.An Icrier report had pegged the size of the sector at about $590 billion.