Amazon is still dwindling between the restrictions imposed by DIPP and its plans to take-off ambitious $500 million project in India. After receiving nod from the Indian government for its food retail venture, DIPP had asked the company to keep separate equipment, machinery and warehouses for its food products and not to mix or share anything with its marketplace business.
However, as per the reports, it is said that the food Processing Minister Harsimrat Kaur Badal has given hope to the US-based etailer. The Minister has asked the Department of Industrial Policy and Promotion (DIPP) to relax restrictions imposed on Amazon’s food retailing plans.
“Last month, I met the officials at DIPP to sort out Amazon’s food retail venture, which had met with some roadblocks. First, DIPP was not allowing them to have it (food retail and marketplace products) in the same space. Then they told them to maintain separate inventories,” Minister said, reported Inc42 media.
The minister further added that while DIPP has agreed to relax the requirement of maintaining separate warehouses, the department is yet to allow Amazon to use the same transportation and logistics resources for distribution in both ventures.
Despite opening its pilot project in Pune and investing $1.5 million in Amazon Retail India, The company is still mulling over its decision of Pan India roll out.