FIPB clears Swatch, Delphi, Nokia plans

NEW DELHI, JUNE 7: The Foreign Investment Promotion Board FIPB today permitted Swatch to set up a wholly-owned subsidiary here for manu...

NEW DELHI, JUNE 7: The Foreign Investment Promotion Board FIPB today permitted Swatch to set up a wholly-owned subsidiary here for manufacturing its range of wrist watches even as telecom major Qualcomm8217;s plea to pledge 25 per cent stake in its Indian venture was rejected.

This was part of the 40 proposals approved by the board, which amounted to a foreign direct investment inflow of Rs 125 crore, FIPB sources said here. The board also gave a go ahead to Delphi to increase its product portfolio through its Indian subsidiary and to Denso Haryana Limited for producing multi-point fuel injection systems in its Gurgaon unit, which would be used by Maruti Udyog Limited and other car makers for meeting the Euro-II emission norms. The Deplhi proposal does not amount to inflow of any fresh equity into India

Another proposal from Denso was given the green signal by the board at its hearing today. Denso has been permitted to increase the technical payment it receives from the joint venture with KirloskarEngineering of Bangalore.

Swatch has been allowed to set up a 100 per cent subsidiary here for manufacturing and assembling wrist watches for domestic and export markets. The company would initially import watches from Switzerland and test-market them here for two years. However, it would have to undertake investments in setting up plant and machinery simultaneous to the test marketing. The test marketing has been permitted only for those products which Swatch has been allowed to produce here, the sources said.

Denso Haryana8217;s proposal for introducing multi-point fuel injection systems does not include any change in equity. The fresh activity would come under its approved investment limit of 50 million over the next five years. Cogentrix has been allowed to extend the implementation period for its project by two years.

Motor Industries Company Limited MICO of Germany has been allowed to buy-back three per cent equity from the general public and hike its stake in the Indian subsidiary from 51 percent to 54 per cent. The company would, for the purpose, purchase two lakh shares for Rs 20 lakh.

Keihin Corp of Japan has been allowed to set up a joint venture with Maharashtra-based Fuel Instruments and Engineers Private Limited for producing carburetors. The Japanese major would control 74 per cent stake in the venture involving a foreign direct investment infusion of Rs 21 crore. Keihin is engaged in the business of producing carburetors, fuel injection systems, electronic conrol units and are original equipment suppliers to Honda, Mitsubishi, Yamaha, Suzuki and Harley Davidson.

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Another watchmaker 8211; Swiss Star International Private Limited 8211; has been allowed to set up a venture here for producing quartz wrist watches and components. The foreign promoter would control 99.9 per cent stake in the venture with an investment of Rs 99.9 lakh. Swiss Star is promoted by an NRI from Kuwait and the unit would be set up in Ahmedabad, Gujarat.

The board today gave the go ahead to Nokia for test marketing itsnew range of cellular handsets in India.

In the software development sector, eight proposals were approved by the board during the day. This included applications from advanced training institute for information technology, Resorys India Private Limited, Birlasoft Inc, Royal Sun Alliance, Jupiter Pointsoft, Myquest Systems and Solixs Enterprises Solutions.

However, decision on Compaq8217;s plea to produce expand its manufacturing and assembling operations in India to include computer hardware was deferred for a week.