THE much-talked about FDI policy for single brand retail sector was yesterday notified by the Govt. From the restriected ceiling of 51%, it is now to be allowed to go up to 100% but not without a rider. All such proposals have to be routed through government approval route.

The key riders as per the Press Note 1 of 2012 are as follows:

(a) Products to be sold should be of a 'Single Brand' only.

(b) Products should be sold under the same brand internationally i.e. products should be sold under the same brand in one or more countries other than India.

(c) 'Single Brand' product-retail trading would cover only products which are branded during manufacturing.

(d) The foreign investor should be the owner of the brand.

(e) In respect of proposals involving FDI beyond 51%, mandatory sourcing of at least 30% of the value of products sold would have to be done from Indian 'small industries/ village and cottage industries, artisans and craftsmen'. 'Small industries' would be defined as industries which have a total investment in plant & machinery not exceeding US $ 1.00 million. This valuation refers to the value at the time of installation, without providing for depreciation.

Application seeking permission of the Government for FDI in retail trade of 'Single Brand' products would be made to the Secretariat for Industrial Assistance (SIA) in the Department of Industrial Policy & Promotion. Applications would be processed to determine whether the products proposed to be sold satisfy the notified guidelines, before being considered by the FIPB for Government approval.