By IANS, Jaipur : Automobile major Honda Siel Cars India (HSCI) is all set to establish a Rs.10 billion ($240 million) small car manufacturing project in Rajasthan, officials said Tuesday.
The company is expected to sign a memorandum of understanding (MOU) with the Rajasthan government here Thursday for the project, slated to come up in Khuskhera industrial area in Alwar district, 140 km from here.
HSCI proposes to manufacture around 50,000 cars per annum initially from the facility and progressively increase the number to 100,000.
“We are acquiring over 750 acres of land for the project as well as for ancillary units, which would come up along with the car project,” said Kuldeep Ranka, managing director of Rajasthan State Industrial Development & Investment Corporation (RIICO).
Rajasthan, particularly the area falling in the national capital region (NCR) comprising Bhiwadi, Khuskhera and Chopanki, is fast emerging into a hub for the auto and auto components sector.
Around 70 auto component units with an aggregate investment of Rs.6 billion are already operating in the area.
RIICO has been focusing on attracting investment in the area. It recently decided to earmark about 20 acres in Pathredi near Chopanki for the auto components and engineering sector.
“RIICO will be providing state-of-the-art infrastructure and an enabling environment in developing this area that is likely to attract an investment of about Rs.12.5 billion to Rajasthan,” Ranka told IANS.
Prominent companies that have shown interest include Global Auto Parts Alliance India Pvt Ltd, Shriram Piston and Rings Ltd, International Tractors Ltd and Caparo Engineering Pvt Ltd.
RIICO has also embarked upon developing another auto components zone near Bhiwadi that can attract a further investment of Rs.30 to Rs.50 billion from the auto components sector.