Foreign chains get leeway on back-end investments

The mandatory $50-million (Rs 250-crore) back-end investment to be made by foreign multi-brand retail chains, such as Walmart, Carrefour and Tesco, would not be restricted to greenfield (new) facilities alone. Department of Industrial Policy & Promotion (DIPP) Secretary Saurabh Chandra told Business Standard that a foreign retail chain was free to buy a brownfield (existing) facility but it would need to invest at least $50 million “towards creating additional back-end infrastructure there”. Greenfield units relate to areas where no previous facilities existed, while brownfield ones are those often under-used projects that have potential for re-development.

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