An Indian panel has cleared investment plans by Tesco and Vodafone worth more than $1.5bn, as foreign firms show new interest in the country since New Delhi eased barriers to foreign capital.
The Foreign Investment Promotion Board (FIPB) sanctioned a proposal by Vodafone, the world\’s biggest mobile phone company, to buy its joint venture partners\’ stakes in its Indian arm for 101bn rupees (£1bn).
Tesco, the world\’s third-largest retailer, had applied to the board for permission to invest an initial $110m (£66.6m) in the Tata conglomerate\’s retail business Trent Hypermarket.
\”The board gave permission to Tesco and to Vodafone. Now the applications must go to the Cabinet Committee on Economic Affairs,\” a senior foreign investment panel official told AFP on condition he was not named.
The move by Vodafone to buy out its partners comes after India opened the telecom sector to 100pc foreign ownership five months ago and comes despite a bitter tax row with the Indian government over its Indian investment that is under conciliation.
Before that, foreign ownership in phone firms was capped at 74pc.
New Delhi moved last August to open up its large and potentially lucrative retail sector to foreign companies to try to boost the slowing economy.
via Tesco and Vodafone cleared to invest billions in India – Telegraph.
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