New Delhi, May 11 (KNN) Eight months after the government notifications allowing entry into India, global multi-brand retailers are dilly-dallying and lobbying hard for further concessions before they bring in any investment into the country.

The concession sought by these retailers including TESCO of the UK are relaxation on the 30 per cent sourcing from India from the small scale industries and less investment in back-end infrastructure, among others.

They also want relaxation in the requirement that at least 50 per cent of the USD 100 million should be invested in the creation of backend infrastructure.

The dilly-dallying by these global chains was evident at a meeting between TESCO CEO Phillip Clarke and Commerce and Industry Minister Anand Sharma here on May-10.

Typically, these relaxations are sought in the name of “clarifications” and ironically the government seems to be obliging them. “There will be important points of clarification in the months ahead and then you will hear more from us,” Clarke said after his meeting with Sharma.

One of the relaxations sought by the global retailers is that their purchases of agriculture products should be treated as a part of the mandatory 30 per cent sourcing from the micro small and medium enterprises.

However, the Department of Industrial Policy and Promotions does not seem to be agreeable on this count.

Even after eight months of the government notifying entry of multi-brand retailers with 51 per cent stake, none of the international retailers have announced any plans to set up stores in India.

It is believed, that they might be waiting for the next general elections because the licence to open stores will have to be obtained from the state governments and several of them have opposed FDI multi-brand retail.  (KNN)