Business | Wed Dec 26, 2012 12:19pm IST

India rejects M&M's proposal for defence JV with Rafael

NEW DELHI (Reuters) - India has rejected a proposal by autos-to-software conglomerate Mahindra & Mahindra to set up a joint venture with Israel's Rafael Advanced Defense Systems Ltd, a government statement said on Wednesday.

According to media reports, the companies were to invest about 1 billion rupees to develop and manufacture naval systems.

The Foreign Investment Promotion Board of the Finance Ministry also approved 12 proposals of foreign direct investment amounting to about 8.02 billion rupees.

(Reporting by Arup Roychoudhury; Editing by Prateek Chatterjee)