Alpha Airports proposal not cleared; Lladro gets nod

New Delhi: A proposal by UK-based Alpha Airports to enter the airport retail segment has not been cleared by the Foreign Investment Promotion Board, while that of Spanish porcelain maker Lladro for opening retail boutiques got the nod.
“Alpha Airports, which had applied for setting up a fully owned Indian subsidiary to carry out retail activities at airports has not got the board’s nod,” official sources said.
According to reports, Alpha had said in its application that the proposed duty-free shops would be considered to be in the nature of trade outside the customs territory of India and the shops will sell only in foreign currency and not in Indian rupee.
The argument has not found many takers in the board as the government has allowed foreign direct investment only in single brand retail and that too up to 51 per cent.
Spanish porcelain maker Lladro, whose application was approved, is, on the other hand, forming a joint venture to open retail boutiques to sell products under its brand in India.
07/10/06 Press Trust Of India/Business Standard

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