FIPB clears Tesco's Multi Brand Retail in India Monday Dec 30,2013

The Foreign Investment Promotion Board (FIPB) on Monday Dec 30,2013 approved two major investment proposals:

•  UK-based Tesco’s plan to enter the Indian multi-brand retail segment with an initial outlay of $110 million (Rs 680 crore) and

•  Vodafone Plc’s bid to raise its stake to 100 per cent in the Indian venture paying over Rs 10,000 crore

British retailer Tesco’s proposal to set up a joint venture with Tata group company Trent Hypermarket is probably the fastest ever to be processed and cleared by the FIPB.

 The proposal was filed with the Department of Industrial Policy and Promotions on December 17, after which it was processed and sent for inter-ministerial consultations. It came before the FIPB last week and brought up for consideration by a committee chaired by Economic Affairs Secretary Arvind Mayaram. 

Tesco will invest $55 million (around Rs 340 crore) in three years to develop back-end infrastructure.

Tesco and Trent will have 50 per cent equity each in the joint venture.