Delhi: The Foreign Investment Promotion Board (FIPB)
has accepted General Motors India's application for payment
of both lump sum engineering fee and royalty to GM Daewoo
Auto & Technology, Korea (GMDAT).
to an official release, GM had made the application for
payment of lump sum engineering fee to GMDAT amounting
to $9.4 million (approximately Rs42.3 crore) over a period
of three years and five per cent running royalty payment
on each vehicle manufactured and sold by GM India with
the technical know how given by GMDAT up to 2012.
proposal had been deferred earlier as the department of
heavy industry had said that it needed more time to examine
it. The department, however, in a recent letter gave its
nod for the proposal and stated that it would help in
promoting healthy competition.
to market watchers, GM's proposal is indicative of the
company's plans to roll out new car models in the country
from GMDAT's portfolio. Sources said GM India is planning
to roll out the Chevrolet Aveo, which is based on the
platform, sometime next year. The vehicle is likely to
be positioned in the premium compact segment, which has
seen a spate of launches over the last few months.