Honda's proposal was part of the 43 proposals approved by the board envisaging a total FDI inflow of Rs 425 crore.

Government sources said Honda proposed to invest Rs 183 crore to set up a wholly-owned subsidiary for manufacturing an entire range of scooters and motorcycles in the 50 cc-250 cc range.

The company would also be producing a range of four-stroke engines for bi-wheelers apart from components. Honda also plans to export the Honda brand of vehicles from the country. The company has projected to post an export turnover of $18 million in the first five years of operation, sources added.

The Honda subsidiary, to be capitalised at $43 million, is slated to start production of four-stroke scooters at an initial pace of 100,000 units a year, by the second half of 2001 at a new plant to be built nearDelhi.

Honda plans to hike the annual output to 200,000 units by 2004 and further plans to produce a four-stroke motorcycle. The company would employ 500 staff initially and plans to increase to 1,800 by 2004.

Honda, through this subsidiary, would focus on scooters for five years and, thereafter, Hero Honda and the Honda subsidiary would look at the possibility of expanding their product range to encompass all two and three-wheelers.

Significantly, Reliance group withdrew its proposal to set up an asset management company.

FIPB however, approved Godrej's plea to sell its entire stake in a joint venture company to its partner, Mauritius-based Tech Pacific. Tech pacific would be bringing in Rs 115 crore to convert its 50:50 joint venture with Godrej into a wholly-owned subsidiary.

The board also gave green signal to Motorola's proposal to bring in $2 million for acquiring grass check technologies, sources said. Motorola in its proposal has also stated that an additional amount of Rs 8 crore would beinvested in the venture, sources added.

The board also gave a green signal to UK-based Entryline Holdings to take over the entire holding of Usha Beltron by bringing in $2 million. It would also subscribe to additional preference shares worth $3 million.

BMG Crescendo has also been permitted to hike its stake in its existing venture in the country from 51 per cent to 70 per cent. The company would purchase the holding of Suresh Thomas for Rs 85 lakh.

Further, FIPB allowed GE India to set up a wholly-owned subsidiary at an investment of Rs 42.5 crore. The venture would be a sourcing company for procuring materials and services for GE group companies worldwide.

Meanwhile, KSM Ingeniburgenpinschaft of Germany has been allowed to set up a 100 per cent subsidiary for implementing turnkey projects in water treatment plants. The company would be investing Rs 10 lakh for the purpose.

The board also gave its nod to Metromania Technology International to set up a joint venture company for outdoor advertisingand digital printing. Metromania would pick up 66.6 per cent holding in the venture with an infusion of Rs 14 crore. Megacell Digital Pvt Ltd of Calcutta is the Indian partner in the venture.

Worldfone India has been allowed to provide internet services in the country through a joint venture company. The foreign partner would pick up a 49 per cent stake in the venture for Rs 75 lakh.

Techpack International of France has been permitted to set up a wholly-owned subsidiary with an infusion of Rs 21.25 crore for manufacturing containers. Stolberg India is also setting up a 100 per cent owned company for producing industrial chemicals with an investment of Rs 8.38 crore.

Alpha Airport Holdings of Netherlands has been allowed to set up a 50:50 joint venture for servicing and managing duty free shops at the Kochi airport. The company would be bringing in Rs 55 lakh for the purpose.