As per an application placed with the FIPB, HSCI has stated that it would not directly import the Honda vehicles but would facilitate the eligible importers in selecting and getting the vehicles to India.

The proposal would come up for hearing at the board's meeting on Monday, sources in the industry ministry said.

HSCI vice-president and director (administration) NK Goyla, when contacted, said that the company would create awareness in the country about the various models available in Honda stables and help the eligibale customers to select the right model.

"We will help in importing the vehicle, co-ordinating with HMC, Japan, for supplies and also readying the Honda Exclusive Authorised Dealers (HEADs) for providing after-sales sevice for the vehicles," he added.

"Our company has not applied for directlyimporting Honda cars. We know that the import policy does not permit us to do it. We have just sought to be allowed to become the indenting agents for Honda so that we can facilitate the process of importing Honda vehicles."

HSCI, however, has not specified any particular models to be imported as the final models would be decided by the customers themselves.

This exercise, Goyla added, would also help in collating data about the preferences of particular models and might help in finalising future introductions in India.

Regarding the service support for the imported vehicles, he said, "We would be training our existing authorised dealers for the purpose."

Meanwhile, the FIPB had earlier this week permitted Honda Motor Company to set up a wholly-owned subsidiary for producing scooters and motorcycles in India.

The Japanese auto major had sought to invest Rs 183 crore to set up a wholly-owned subsidiary for producing its range of scooters and motorcycles in the 50cc to 250cc range. The company wouldalso be producing a range of four-stroke engines for bi-wheelers besides components.

It also seeks to export the Honda brand of vehicles from India. The company has projected to clock an export turnover of $18 million in the first five years of operation.

This would mark Honda's re-entry into the Indian scooter market having severed ties with the Arun Firodia-run Kinetic Engineering Ltd.

The final models, their positioning and pricing would be detailed later. The modalities are being finalised in Japan and in a few weeks, the final details would be available.

The subsidiary, to be capitalised at $43 million, is set to start production of 4-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 near Delhi.

Honda plans to raise the annual output to 200,000 units by 2004 and production of a 4-stroke motorcycle is also planned in the future. The company would employ 500 staff initially and plans to increase to 1,800 by 2004.

Honda, throughthis subsidiary, would focus on scooters for a period of five years and, thereafter, Hero Honda and the Honda subsidiary shall expand the range to encompass all two and three-wheelers.