The government on Sunday cleared the proposal of German luxury car maker, BMW, to set up a plant in Chenglepet, Tamil Nadu, through a wholly-owned subsidiary at an investment of Rs 100 crore (Rs 1 billion).
The plant will assemble automobiles using knocked down car parts kits imported as well as sourced in India, a source close to the development said.
This was part of the 30 foreign direct investment proposals worth Rs 181.68 crore (Rs 1.82 billion) cleared by Union finance minister P Chidambaram.
BMW wanted to convert BMW India, into a wholly-owned subsidiary by acquiring all its 10,000 shares from the company's existing shareholders, Ravinder Nath and Satish Kumar Narula, at a face value of Rs 10 a share.
Besides, BMW will infuse fresh capital into the company at a face value amounting to Rs 73 crore (Rs 730 million). The finance minister also cleared the proposal of EAC Industrial Ingredients to set up a 100 per cent Indian arm, which would undertake wholesale trading by importing and supplying industrial ingredients with an investment of Rs 30 crore (Rs 300 million).
The government also cleared the investment proposal of Silver Peak Investments (Mauritius) to invest Rs 32.62 crore (Rs 326 million) JP Morgan Advisors, which is engaged in non-banking financing activities, to transfer shares from resident to non-resident shareholders.
Foster's Group was allowed to covert its investments in India from a non-repatriation basis to repatriation basis.
