Japanese two-wheeler major Yamaha's plans to transfer its Indian sales business to a new entity — India Yamaha Motor Pvt Ltd (IYMPL) — have hit a hurdle, with the industry ministry opposing the company’s proposal to import products. IYMPL is a wholly-owned subsidiary of Yamaha Motor Co.
Highly-placed sources said the Foreign Investment Promotion Board (FIPB) has deferred a decision on the proposal in its recent meeting, after the industry ministry said IYMPL should not be allowed to import since that would lead to retail trading, which does not conform to FDI policy.
Asked about the development, a senior IYMPL official said: "FIPB had asked for some clarifications and we have given them. The proposal will be approved in the next meeting of FIPB."
