19 August 2008 20:21 [Source: ICIS news]
NEW DELHI (ICIS news)--India’s Foreign Investment Promotion Board has deferred making a decision on a proposed chloromethanes joint venture (jv) between a subsidiary of Dow Chemical and Gujarat Alkalies and Chemicals Limited (GACL), following comments made by two government agencies, an official said on Tuesday.
The Department of Chemicals and Petrochemicals said it required time to “examine the proposal”, the government official said.
The Department of Industrial Policy and Promotion suggested that the proposal might be referred to the Project Approvals Board, as it called for the joint venture to make a $17m (€12m) technology-transfer fee to another Dow entity, Dow Global Technologies, the official said.
The Projects Approvals Board decides on technical collaborations that are not covered by an automatic-approval mechanism. Similarly, the Foreign Investment Promotion Board decides on foreign-investment applications that do not fall under the automatic-approval system.
The 50-50 joint venture would be named Dow-GACL SolVenture Limited. The official did not specify Dow's stake in the venture.
The Dow subsidiary that would participate in the joint venture, Dow Europe, is owned by Dow Europe Holding of the Netherlands. Dow Europe Holding is, in turn, owned by Dow Chemical.
The joint venture plans to build a 200,000 tonne/year chloromethanes plant at Dahej, Gujarat state. The project is scheduled for financial closure by late 2008 and commissioning in 2011.
GACL would lease land to the joint venture as well as supply feedstock and power from its existing production complex at Dahej. Dow would provide technology and marketing expertise.
The joint would market its products to member countries of the South Asian Association for Regional Cooperation (SAARC).
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