The foreign partner will invest 45.6 per cent in the paid-up equity share capital of Eicher Motors India Ltd, incorporated by Eicher Motors Ltd in March, for its commercial vehicles business.
The cash investment by Volvo and its subsidiaries will amount to $275 million. Eicher Motors, which will hold 54.4 per cent stake, will transfer its truck, bus and component business as well as engineering services to the joint venture.
The CCEA also approved the 444-Mw Vishnugad Pipalkoti hydroelectric project in Uttarakhand at an estimated cost of Rs 2,492 crore.
The project, to be commissioned by June 2013, will be set up by the Tehri Hydro Development Corporation. The corporation will contribute 50 per cent equity while the rest will be shared between the Centre and the Uttarakhand government in the ratio of 3:1.
The CCEA also gave the Shipping Corporation of India the go-ahead to acquire four panamax bulk carriers of about 80,000 dead weight tonnage (DWT) at a cost of $59.55 million each.
It also approved four-laning of NH-37 A (Silghat-Tezpur) and construction of a new four-lane highway from Tezpur to Jamgudi (on NH-52). The existing NH-52 (from Jamgudi to Gohpur) and NH-52 A (from Gohpur to Itanagar) will also be taken up. The total expenditure would be to the tune of Rs 150 crore.
Meanwhile, the Cabinet approved the issue of policy guidelines for allotment of defence land to public sector and independent infrastructure providers who have been granted licence by the Department of Telecommunications to build, operate and maintain various services.
The decision will improve the quality of communication services in cantonments and military stations.
