The Foreign Investment Promotion Board (FIPB) has cleared a proposal of Germany-based SMS Siemag Aktiengesellschaft seeking foreign equity participation of 51 per cent in a proposed joint venture.
SMS Siemag had sought approval for a foreign equity participation of 51 per cent amounting to Rs 30 crore in the proposed joint venture -- Esmech Equipment -- which will manufacture metallurgical products, a source said.
The balance 49 per cent equity will be held by Mumbai- based HB Esmech and Suresh Joshi and Vijay Joshi, the owners of the local firm.
HB Esmech is engaged in metallurgical industry.
SMS Siemag engaged in the business of design, manufacture, sale and commissioning of equipment for the metallurgical industry has two subsidiaries - SMS Iron Technology and SMS India - in India.
The proposal will now go to Finance Minister Pranab Mukherjee for final approval.