Swedish furniture giant Ikea's proposal for making investments in food & beverages space is likely to be cleared by the government in a new proposal that the foreign company has tabled before the Foreign Investment Promotion Board (FIPB).

Of Ikea's investment proposal of Rs 10,500 crore (Euro 1.5bn) in India, the FIPB has approved proposals worth only Rs 4,200 crore, as it disallowed the company proposal to sell most of the products and establishment of in-store cafes.

Ikea then approached Department of Industrial Policy & Promotion (DIPP), asking it to review the FIPB's decision.

On Wednesday, Commerce Minister Minister Sharma gave a strong hint that Ikea would be allowed to follow its global model, which includes cafes inside its stores, in India.

Speaking on the topic, Mr. Sharma said, "Frankly speaking we see no reason why their global model, once we have allowed 100 per cent FDI in single brand retail, has to be changed in any manner."

The DIPP under Mr. Sharma has already forwarded the proposal to the FIPB in the Finance Ministry, requesting the board to review its November 20 decision.

The Swedish retailer's proposal will come up before the FIPB for reviewing on December 31.

Ikea is the world's biggest furniture retailer, with a total of 336 stores in as many as 44 countries. It has plans to establish ten furnishing and home ware stores along with allied infrastructure in the coming ten years in India. For the subsequent 15 years, it has plans to open fifteen more stores.