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By ANI ANI The Financial Services Regulatory Authority of India ( FSRAI ) announced on Tuesday that it has approved the purchase of over 20,000 shares of Tata Motors India Pvt.

Ltd.

in a private placement.

The purchase price was Rs. 7,600 crore (about Rs. 4.5 crore), and will be executed over a period of 10 years.

Tata Motors is one of the most significant automobile companies in the country and the second-largest auto-manufacturer after Tata Motors and Tata Motors Advanced Motor Manufacturing.

The announcement follows a proposal by Tata Motors to invest Rs. 10,000 crore in the company over the next three years, a deal worth Rs. 5,000 billion (about $2.5 billion).

The investment will be made in new capacity and facilities in the United States and other developed markets.

The deal also includes the purchase by Tata of its existing plants in India and other overseas operations.

The deal is part of a Rs. 2,400 crore purchase order for Tata Motors by its former parent company, Tata Steel, for a total value of over Rs. 17,600 crores (about US$9.6 billion).

The Rs. 13,000 crores in the Tata Motors Private Placement comes from a Rs 1,000-crore equity offering of Tata Steel (which had an outstanding balance of Rs. 9,900 crore).

This includes Rs. 1,400 crores which were issued in January this year and Rs. 3,000 Crores which are scheduled to be issued in 2019.

The remaining Rs. 12,500 crores will be used to buy back existing shares of the Tata Group.

The Government of India has approved Tata Motors investment in India for an additional amount of Rs 2,600 cr.

This comes after the Government of Maharashtra approved a private acquisition of over 5,500 shares in Tata Motors, valued at Rs. 8,000 cr.

The Government of Gujarat approved a similar private acquisition last year of over 2,000 Tata Motors shares for Rs. 16,500 cr.

The FSRAi said in a statement: “The Government has taken the decision to make this investment in the private placement of Tata Motor in India.

It is the Government’s intention to accelerate the development of Indian automotive and automotive-related industries and accelerate the delivery of quality, competitive and sustainable product.

The transaction is in line with Government’s strategy to further boost the competitiveness of India’s automotive industry, by establishing a long-term partnership and increasing capacity, investment and capacity of the domestic automotive sector.”

The Government had in April 2017 approved a deal valued at US$8.4 billion with Tata Motors.

The transaction was part of the $50 billion deal to supply the country’s first homegrown electric car, a Tata Nano, to the Indian market.