The note also dispensed with prior government approval in cases where the existing JV investment by either of the parties is less than 3%. Press Note 1 replaced Press Note 18 (1998 series) in January '05. Press Note 18 required the government's prior permission for FDI or technology collaboration for such foreign investors who have or had any previous joint venture or technology transfer in the same or allied field in India.
Sources said Suessen India has informed the government of its inability to furnish an NOC from LMW. It argued that Rieter's 13% stake in LMW was “a passive investment” and there was no “financial collaboration” between the two JV partners.
It said that the equity stock was given to the Swiss company free of cost for providing technology. The technology agreement had already lapsed and Rieter had withdrawn its nominee director from the board of LMW.
Coimbatore based LMW, founded in the year 1962, is today a global player and one among the three manufacturers of the entire range of Textile Machinery.
Rieter Textile Systems is the leading supplier of integrated systems for manufacturing yarns from natural and man-made fibers for all applications. Rieter Textile Systems is the world's only supplier of products and know-how covering the entire spinning process and can therefore develop optimal solutions for customers.
marketing@alchempro.com
