M&M, BAE joint venture for land systems up for approval before FIPB
23 Sep 2008
Indian automotive major, Mahindra & Mahindra (M&M) has approached the central government's Foreign Investment Promotion Board (FIPB) to approve a joint venture for land systems with British Aerospace Systems (BAE), according to a report in CNBC-TV18. The report was quoting sources.
The report says that BAE is looking at picking up 49 per cent equity in the JV.
It quoted sources as saying that the FIPB may take up M&M's application for consideration on 26 September.
Meanwhile, the report also quoted company officials as saying that a company application was indeed pending before the FIPB for approval.
Though existing norms allow only 26 per cent foreign direct investment in the defence sector, recent revisions would allow 49 per cent equity on a case-to-case basis.
Earlier, in February this year, BAE Systems and M&M had signed a memorandum of understanding to manufacture an anti-landmine vehicle.