New Delhi, Mar 27 : The Cabinet Committee on Economic Affairs today gave its approval for setting up a Joint Venture by M/s. Daimler AG, Germany (DAG) to jointly incorporate a company, a technology license agreement and other agreements with Hero Group India with an investment of Rs.16.5 billion constituting 60 per cent of the equity capital for the purpose of designing, manufacturing and selling of commercial vehicles above 2.0T Gross Vehicle Weight (GVW) for Indian domestic markets and overseas markets.
The Joint Venture (JV) will also be sourcing components from India for Daimler's global requirements. The JV would also undertake research and development activity for new products and variants.
Foreign Direct Investment (FDI) amounting to Rs.16.5 billion (Approx.) will be received in the country.