TMI BlogReview of the policy on foreign direct investment in the Multi-Brand Retail Trading Sector-amendment of paragraph 6.2.16.5 (iii), (iv) and (vi) of Circular 1 of 2013-Consolidated FDI PolicyX X X X Extracts X X X X X X X X Extracts X X X X ..... ed FDI Policy effective from April 5, 2013, relating to the policy on FDI in Multi-Brand Retail Trading, read as below: 1.2 Paragraph 6.2.16.5 (iii) At least 50% of total FDI brought in shall be invested in backend infrastructure within three years of the first tranche of FDI, where back-end infrastructure will include capital expenditure on all activities, excluding that on front-end units; for instance, back- end infrastructure will include investment made towards processing, manufacturing, distribution, design improvement, quality control, packaging, logistics, storage, ware house, agriculture market produce infrastructure etc. Expenditure on land cost and rentals, if any, will not be counted for purposes of backend infras ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icipal/urban agglomeration limits of such cities. The locations of such outlets will be restricted to conforming areas, as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking. 2.0 Revised Position: The Government of India has reviewed the position in this regard and decided to amend Paragraph 6.2.16.5 (iii), (iv) and (vi) of Circular I of 2013-Consolidated FDI Policy , effective from April 5, 2013, as below: 2.1 Amendment to paragraph 6.2.16.5 (iii): At least 50% of total FDI brought in the first tranche of US $ 100 million, shall be invested in backend infrastructure within three years, where back-end infrastructure will ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufactured! processed products purchased, beginning 1st April of the year during which the first tranche of FDI is received. Thereafter, it would have to be met on an annual basis. 2.3 Amendment to paragraph 6.2.16.5 (vi): Retail sales outlets may be set up only in cities with a population of more than 10 lakh as per the 2011 Census or any other cities as per the decision of the respective State Governments, and may also cover an area of 10 kms around the municipal/urban agglomeration limits of such cities; retail locations will be restricted to conforming areas as per the Master/Zonal Plans of the concerned cities and provision will be made for requisite facilities such as transport connectivity and parking. 3.0 The above decision ..... X X X X Extracts X X X X X X X X Extracts X X X X
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