New Delhi, Dec. 23:
The Foreign Investment Promotion Board (FIPB) will take up on December 30 British retailer Tesco's proposal to enter multi-brand retail in the country.
This is the first proposal after the Government allowed 51 per cent foreign direct investment (FDI) in multi-brand retail trade last September. The proposal has been put on fast track, as the Government hopes quick clearance will attract other retailers as well. The company had applied for approval on December 17.
Tesco aims to pick up a 50 per cent stake in Tata Group's Trent Hypermarket Ltd. It plans to invest $110 million (around Rs 680 crore) to set up shops here, which will be operated under the names Star Bazaar, Star Daily or Star Market. The joint venture (JV) is expected to open shop first in Maharashtra and Karnataka.
Once the FIPB gives its nod, the JV will have to seek approval from the respective State Government. The Centre's policy on FDI in multi-brand retail is only an enabling one and companies are required to approach State Governments and local authorities before setting up shops. Currently, foreign retailers can set up shops in 12 States and Union territories.
shishir.s@thehindu.co.in
(This article was published on December 24, 2013)
via Business - Google News http://news.google.com/news/url?sa=t&fd=R&usg=AFQjCNHJMVWRea4zX2RijOMPzWmflj-NWw&url=http://www.thehindubusinessline.com/companies/fipb-to-consider-tescos-proposal-on-dec-30/article5497427.ece
Put the internet to work for you.
0 comments:
Post a Comment