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FIPB clears Swatch, Delphi, Denso, Nokia, Mico, Cogentrix proposals

The Foreign Investment Promotion Board today permitted Swatch to set up a wholly-owned subsidiary in India for manufacturing its range of wrist watches. Telecom major Qualcomm's plea to pledge 25 per cent stake in its Indian venture was rejected.

These were part of the 40 proposals approved by the board, which amounted to a foreign direct investment inflow of Rs 1.25 billion, FIPB sources said.

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 Delphi 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 Kirloskar Engineering 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 simultaneously with test marketing.

The test marketing has been permitted only for those products which Swatch has been allowed to produce here, the sources said.

Denso Haryana'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 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 per cent to 54 per cent. The company would, for the purpose, purchase 200,000 shares for Rs 2 million.

Keihin Corporation of Japan has been allowed to set up a joint venture with Maharashtra-based Fuel Instruments and Engineers Private Limited for producing carburettors. The Japanese major would control 74 per cent stake in the venture involving a foreign direct investment infusion of Rs 210 million.

Keihin is engaged in the business of producing carburettors, fuel injection systems, electronic control units and are original equipment suppliers to Honda, Mitsubishi, Yamaha, Suzuki and Harley Davidson.

Another watchmaker -- Swiss Star International Private Limited -- 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 9.99 million.

Swiss Star is promoted by an Non-Resident Indian from Kuwait and the unit would be set up in Ahmedabad, Gujarat.

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

In the software development sector, eight proposals were approved by the board during the day. These 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, a decision on Compaq's plea to produce expand its manufacturing and assembling operations in India to include computer hardware was deferred for a week.

Two non-resident Indian promoters have been allowed to set up two multi super-speciality hospitals in Rajasthan, both with 100 per cent foreign equity. Mewar Health Management Private Limited has been allowed to set up a hospital in Jaipur with Rs 160 million investment. American International Health Management Limited has been given the nod to infuse Rs 160 million for setting up a hospital in Udaipur.

In the readymade garments sector, two companies have been allowed to set up new units while another -- Natural Textiles -- has been allowed to buy out its Indian partner.

UNI

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