Tesco invested Rs 850 cr in multi-brand retail: Govt

British retail major Tesco has invested Rs 850 crore in multi-brand retail trading in the country, Parliament was informed today.

"Government approved a proposal from Tesco Overseas Investment Ltd (Tesco), a UK company, for foreign investment of not less than $110 million to carry out business of multi-brand retail trading in India.

"The FDI inflow reported by the RBI from Tesco is Rs 850 crore," Commerce and Industry Minister Nirmala Sitharaman said in a written reply to the Lok Sabha.

In March last year, Tesco had announced formation of an equal joint venture with Tata group company Trent by picking up 50 per cent stake in Trent Hypermarket Ltd (THL). THL operates the Star Bazaar retail business in India.

Tesco was the first global retailer to apply for multi-brand retailing after the government allowed 51 per cent FDI in the segment in September 2012.

The minister also said: "Government has not taken any decision with regard to implementation of FDI policy in multi-brand retail trading".

The BJP, which got a massive mandate in the general elections last year, had opposed foreign direct investment (FDI) in multi-brand retail in its manifesto.

Currently, 51 per cent FDI is permitted in multi-brand retail.

Replying to a separate question on meat exports, she said countries like EU, China and Indonesia have not been allowing import of Indian buffalo meat citing reasons like prevalence of foot and mouth disease in India.

"The government has been flagging the issue of market access of Indian buffalo meat with EU, China and Indonesia from time to time on different platforms," she added.