The proposal of Suzuki Motor Corporation (SMC) to set up a joint venture with its existing subsidiary, Maruti Udyog (MUL), has been cleared by the Foreign Investment Promotion Board (FIPB).The proposal was cleared by FIPB at its meeting on March 30, 2005.The joint venture - Maruti Suzuki Automobile India - will manufacture certain models of SMC's four-wheelers, parts and accessories.While SMC will hold 30% of the equity of the new firm, MUL will hold the remaining 70%. The proposed paid-up capital of Maruti Suzuki Automobile India will be Rs 40 crore.The company proposes to commence manufacturing by October 2006, minister of state for finance S S Palanimanickam said in a written reply today.
