Alpha cleared for Indian investment

Gavin Lipsith

Print Article E-Mail Article E-Mail Author

The group’s proposal to invest almost $2m in establishing an Indian subsidiary is cleared after weeks of debate

The Indian finance ministry has approved Alpha Airports Group’s proposal to set up a wholly-owned subsidiary in the country. Alpha plans to invest Rs8.96bn ($198.2m) in the subsidiary, which will aim to establish duty-free shops, flight kitchens and catering outlets at Indian airports.

However, government sources told India’s Economic Times that Alpha would have to seek separate clearances for duty-free stores, given India’s strict rules on foreign direct investment in retail.

The announcement ends weeks of speculation in the Indian press about whether Alpha’s proposal would be approved. Earlier this month Alpha announced a memorandum of understanding with India’s largest domestic retailer, Pantaloon Retail, to seek duty-free and catering opportunities at Indian airports.