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FIPB approves Rs 4.25b foreign investment proposals

The Foreign Investment Promotion Board today permitted Honda Motor Company of Japan to set up a wholly-owned subsidiary for producing scooters and motorcycles in India.

The Reliance group withdrew its proposal to set up an asset management company.

Godrej's plea to sell of its entire stake in a joint venture company to partner -- Tech Pacific of Mauritius -- and Motorola's proposal to acquire Grass Check Technologies were also approved by the board at the board meeting today.

These formed part of the 43 proposals recommended by the board today amounting to a total foreign direct investment inflow of Rs 4.25 billion.

The Japanese auto major Honda had sought to invest Rs 1.83 billion to set up a wholly-owned subsidiary for producing its range of scooters and motorcycles in the 50cc-250cc range. The company would also be producing a range of four-stroke engines for bi-wheelers besides components. It also seeks to export the Honda brand of vehicles from India. The company has projected to cloak an export turnover of $ 18 million in the first five years of operation.

The board also allowed Motorola to infuse $ 2 million for acquiring Grass Check Technologies. The telecom giant has also stated that an additional amount of Rs 80 million would be invested in the venture.

Tech Pacific would be bringing in Rs 1.15 billion to convert its 50-50 joint venture with Godrej into a wholly-owned subsidiary, the sources pointed out.

The board also gave a green signal to Entryline Holdings of the United Kingdom to takeover the entire holding of Usha Beltron by bringing in $ 2 million. It would also subscribe to additional preference shares worth $ 3 million.

BMG Crescendo has also been permitted to hike stake in its existing venture in India from 51 per cent to 70 per cent. The company would purchase the holding of Suresh Thomas for Rs 8.5 million to hike its stake in the venture.

GE India has been allowed to set up a wholly-owned subsidiary with an investment of Rs 425 million. The venture would be a sourcing company for procuring materials and services for ge group companies worldwide.

Meanwhile, KSM Ingeniburgenpinschaft of Germany has been allowed to set up a 100 per cent subsidiary for implementing turnkey projects in water treatment plants. The company would be investing Rs 1 million for the purpose.

The board also gave its nod to Metromania Technology International to set up a joint venture company for outdoor advertising and digital printing. Metromania would pick up 66.6 per cent holding in the venture with an infusion of Rs 140 million. Megacell Digital Private Limited of Calcutta is the Indian partner in the venture.

Worldfone India has been allowed to provide Internet services in the country through a joint venture company. The foreign partner would pick up a 49 per cent stake in the venture for Rs 7.5 million.

Techpack International of France has been permitted to set up a wholly-owned subsidiary with an infusion of Rs 212.5 million for manufacturing containers. Stolberg India is also setting up a 100 per cent owned company for producing industrial chemicals with an investment of Rs 83.8 million.

Alpha Airport Holdings of the Netherlands has been allowed to set up a 50-50 joint venture for servicing and managing duty free shops at the Kochi airport. The company would be bringing in Rs 5.5 million for the purpose.

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