The European Union (EU) on Thursday cleared a joint 57-million-U.S. dollar venture by India's Mahindra World City Developers and Japanese Sumitomo which aims to operate an industrial park in India.

EU executive the European Commission announced in a statement that the extraterritorial merger would "raise no competition concerns because the joint venture will have no activity in, a subsidiary of Mahindra Lifespace Developers Ltd of the Mahindra Group, is active in land development for industrial, commercial and residential use and Sumitomo is a global general trading company.

The joint venture company, Mahindra Industrial Park Chennai Ltd, will have 60 percent equity participation from Mahindra World City Developers and the balance 40 percent from Sumitomo.

The industrial park was reported to target at Japanese companies which would be interested to set up base in India under the Indian government's "Make in India" initiative.

The Commission noted it received notification of the venture on Aug. 3.