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Monday, Feb 18, 2002

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Suzuki seeks enabling norm for 2/3-wheeler partner

Anand Krishnamoorthy
Ambarish Mukherjee

NEW DELHI, Feb. 17

SUZUKI Motor Corp has sought an enabling provision from the Government for the right to rope in a partner in its proposed Indian subsidiary for making two and three-wheelers, according to Government sources.

The Suzuki proposal, which is slated to come up for discussion at the February 21 meeting of the Foreign Investment Promotion Board (FIPB), has already been deferred once - in January - at the behest of the Ministry of Heavy Industries, which wanted to examine the departing agreement between Suzuki and TVS.

"Suzuki would like to reserve the right to find an appropriate joint venture partner who shares its global vision and perspective for the Indian company,'' it said in its application to the FIPB. Incidentally, last year Suzuki forged an international tie-up with Kawasaki, a technology provider for a wide range of Bajaj Auto's motorcycles.

In its application to the FIPB, Suzuki stated that the proposed subsidiary would undertake manufacturing, assembling, selling, marketing, repairing and servicing of two- and three-wheelers and allied products, including motorcycles, scooters, mopeds and their spare parts, components and sub-assemblies. The company has also sought permission to make the proposed Indian subsidiary company pay $2 million for technical know-how and a royalty of five per cent on all domestic sales and eight per cent on exports.

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