Alpha’s duty-free plans meet FIPB roadblock

New Delhi: Duty-free giant Alpha’s plans for the Indian market have run into rough weather. The multinational was planning a joint venture here with Kishore Biyani’s Future Group to tap various segments, including duty-free trade. The foreign investment promotion board (FIPB) has put on hold the Alpha’s plea to allow its holding company in India to set up duty-free shops on airports and invest in flight kitchens.
Trouble seems to be brewing following a letter from former Union minister Jagdish Tytler, highlighting Alpha’s collaboration with Cochin International Airport (CIAL) for duty-free trade. The UK-based company has not disclosed the partnership with CIAL while obtaining FIPB approval last year for a holding company, the Congress MP has said. The department of industrial policy & promotion (DIPP) may seek details from Alpha on its involvement in the CIAL project, top government sources said.
A request from Alpha Airports Group, seeking permission to convert its holding company into a operating-cum-holding company, was to be considered at the FIPB meeting on February 14 but it was withdrawn following Mr Tytler’s communication, they added.
23/02/07 Gunjan Pradhan Sinha & G Ganapathy Subramaniam/Economic Times

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Categories: airports feb 2007, foreign feb 2007