New Delhi: A whole host of new products can be expected from Nestle India that includes sugar confectionery, pickles and chutneys very soon.
Nestle, in its application to the Foreign Investment Promotion Board, has asked for permission for sourcing these products from SSI units or from units that manufacture these items under the carry-on-business (COB) licence.
Items like sugar confectionery, sweet chutneys and pickles are reserved for the small-scale sector in India.
The Department of Food Processing, however, says that Nestle will not be allowed to source sugar confectionery, pickles and chutneys from units manufacturing these products under the COB licence, but only from SSI units.
It has also added a stipulation that Nestle will have to take up an export obligation of 50 per cent of their annual production of these items, which are otherwise reserved for the small sector.
The department also said that Nestle India would not be allowed to have equity participation of more than 24 per cent in any SSI unit.
Nestle has also sought permission for regularisation of royalty payment with effect from 6 February 1999 to 3 February 2000. It has also sought permission for payment of royalty for a period of 10 years from the date of agreement - up to November 2002 - that has been approved by the government.