New Delhi, December 17
The first entry by a foreign retailer to set up supermarkets in India has been made with UK chain Tesco seeking government approval to set up a joint venture with the Tata group.

This is the first application in the multi-brand retail segment since the government allowed 51% foreign direct investment (FDI) in multi-brand retail in September last year.

Till now, no foreign retailer had come in as several state governments had opposed the policy of FDI in retail and there were also fears about the viability of the policy post general elections next year. The government had also carried out some changes in the norms to make the policy format friendlier for retail chains.

According to the Tesco application filed with the Foreign Investment Promotion Board (FIPB), it is setting up a 50-50 joint venture with Trent, a Tata group company in the retail space, to invest $110 million.

The Tata group said Trent and Tesco have been in discussion regarding an investment by Tesco in Trent Hypermarket Limited (THL) which operates the Star Bazaar business.

THL currently operates 16 stores across the southern and western regions of India. The proposed partnership will operate and build on the existing portfolio of Star Bazaar stores in Maharashtra and Karnataka. The application envisages a minimum foreign direct investment in line with the applicable multi-brand retail trading policy, the statement said.

Both the states that have been chosen by the venture have Congress governments and which have supported the policy in their states. According to the FIPB application, Trent Hypermarket Limited plans to open 3 to 5 more stores every financial year.

Commenting on the Tesco investment, Commerce and Industry Minister Anand Sharma said, “We welcome the decision of Tesco to invest in India. We hope this will mark a new beginning in transforming India’s retail industry. I am sure other global leaders will also look at investing in India”.

Trent vice-chairman Noel Tata said, “The application is a positive step forward in the relationship between the Tata group and Tesco. We believe our understanding of the Indian market, coupled with Tesco’s unparalleled global retail expertise, will allow us to leverage the tremendous potential of the market to the benefit all stakeholders.” 

Chandigarh, December 17
Tractor manufacturer Escorts India is eyeing European market for selling small tractors there in a bid to shore up its exports turnover. The company is also looking at expanding its reach in the domestic market via specialised farm equipment.

The company has just commissioned a manufacturing plant in Poland, which is so far catering to the Polish market only. But considering the fact that the tractor manufacturers in Europe do not cater to the small tractor market (less than 100hp), Escorts sees a big opportunity to sell its tractors across Europe.

Talking to The Tribune on the sidelines of the launch of its Farmtrac executive series tractors here today, Sameer Tandon, chief marketing officer of the company, said the company will now start exporting to other European countries from Poland.

“We are in the process of appointing distributors and retailers in Europe. The big tractor companies neglect this market as the cost of producing small tractors for them is too high,” he said.

At present, it exports 1,000 units, mostly to countries in Asia and Africa.

Talking about the Indian market, Tandon said the tractor market in India is growing at 14.5%. “Last year 5.80 lakh tractors were sold in the country and it is expected to reach 10 lakh units per annum in the next five years. Of this, 25% of the tractors were higher horse power tractors The high horse power segment recorded a growth of over 20%. Since this is the fastest growing segment, we are looking at increasing our market share in this segment,” he said.

New Delhi, December 17
Commerce Minister Anand Sharma today said the outcome of the WTO talks in Bali will not impact the country's food security programme.

"Nothing in the aforesaid agreement impinges on our food security programme for the poor and vulnerable sections of society, which is very much part of our sovereign space," Sharma said in the Lok Sabha. He said India will have the flexibility of providing support to its farmers without the apprehension of breaching its WTO entitlements.

It has also effectively led to a commitment from WTO members to work on a permanent solution as part of a post-Bali work programme. Countries which do not run such public stockholding programmes also retain the flexibility to introduce them if they so wish to.

Mumbai, December 17
Sahara group today approached the Securities Appellate Tribunal (SAT) with a fresh appeal against SEBI, challenging penalty proceedings initiated by the capital markets regulator against Sahara India Real Estate Corporation Ltd (SIRECL).

The Tribunal adjourned till Monday this matter, which was listed for "admission" this morning.

The company in its appeal had challenged adjudication proceedings by the market regulator to impose penalty, after the regulator issued show cause notice for non-compliance of its orders. — PTI

New Delhi, December 17
If you pay more than Rs 1 lakh annually towards house rent, then quoting landlord's PAN is mandatory for claiming tax benefit under House Rent Allowance.

"...an employee claiming exemption from tax with respect to House Rent Allowance received is now required to report the PAN of the landlord to the employer, if the rent paid by the employee to the landlord exceeds Rs 1 lakh per annum, along with the rent receipt," said Minister of Sate for Finance JD Seelam in a written statement in the Rajya Sabha today.

He quoted a circular by the Central Board of Direct Taxes (CBDT) on the matter of deduction of tax at source during the payment of salaries. — PTI

New Delhi, December 17
The Coal Ministry has slapped show cause notices on six companies, including Essar Power and Rungta Mines, for delays in developing the blocks.

"You are hereby called upon to show cause, on each milestone separately to this Ministry within 20 days...(as) to why the (delays in) development of the coal block(s) should not be held as violation of the terms and conditions,” it said. — PTI

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