"Tesco is pleased that the FIPB has agreed to our proposal. This will now allow us to work on the practicalities of setting up the Joint Venture with Trent. Any such announcement will be made in the usual way," a Tesco spokesperson said.
The UK-based firm became the first global retailer to get approval to enter country's multi-brand retail sector from the Foreign Investment Promotion Board (FIPB) since the government allowed 51 per cent foreign direct investment (FDI) in multi-brand retailing in September last year.
In 2008 Tesco PLC had announced setting up of a wholesale cash-and-carry business in India, with an initial investment of up to 60 million pounds in the first two years.
It had also entered into an exclusive franchise agreement with Trent to provide expertise and technical capability to support the Indian firm in the running of hypermarket business, under Star Bazaar stores.
Under their existing partnership, Tesco's wholesale business supplies merchandise to Star Bazaar.