The commerce ministry has said that Danone''s proposal to go solo in India needs the government''s approval. This is a setback for Danone''s business plans in India, reports CNBC-TV18.

The government says that Danone needs to abide by Press Note 1. It also said that Danone needs an NOC, or No Objection Certificate from Wadia and Britannia to go solo. The commerce ministry has told the RBI and the finance ministry that Danone needs to abide by Press Note 1.

Sources say that neither the Wadia''s nor Britannia Industries, in which Danone has a stake, have given an NOC to Danone. Danone had apprised the government of its plans to go solo in India, on 10 May.