In 1986, the company for the first time secured government approval to manufacture these components in collaboration with Yushin of Japan. The paid up capital of the company is around Rs 4 crore. Jay Yushin has now applied to the government to manufacture these additional items and to pay a know-how fee of around Japanese Yen 40 million for taking technical assistance from the foreign collaborator for the Alto, Baleno and Wagon R.

The company has sought permission to pay a royalty for a seven-year period from the first month of sale of all the products under fresh agreements as well as the original agreement. The royalty will be payable at 2 per cent on the net sales price of all products manufactured with technical assistance provided by Ushin, and sold in the country for a period of seven years from the month of first sale of such products.

Besides, the company has also been allowed to pay an additional lumpsum payment of a technical fee of $15,000 (subject to taxes), for the manufacture of inner handle assembly. Under the agreement, the company was allowed to pay know-how fees of $45,000 net of taxes, and tax liability was to be borne by the company. It may be pointed out that the company had entered into a supplementary agreement with the foreign collaborator for the addition of two components in the original agreement, namely the back-up lamp switches and a heat control unit.

The company's proposal was cleared by the Foreign Investment Promotion Board recently (FIPB). Regarding the fresh approval, the company will manufactures lock key sets for the Alto, Wagon R and Baleno; door latch front and rear for the Alto and Wagon R; a defogger switch for the Wagon R etc.