29 July 2006
Uttaranchal is fast emerging as an auto hub, thanks to the Government’s tax holiday scheme, reports Business Standard.
Leading companies have decided to set up units in the state to make use of the benefits of the tax holiday scheme. Leading the pack is Tata Motors, followed by with Bajaj Auto and Mahindra and Mahindra, which are together investing about Rs 32 billion in the Pant Nagar and Haridwar industrial estates. Some of the ancillaries of these companies like Neel Metal are also establishing their units.
Tata Motors is expected to invest Rs 25 billion in its manufacturing facility at Pant Nagar industrial estate, where over 370 companies are setting up their new units with a combined investment of Rs 45 billion.
Tata Motors would be producing Ace trucks at the Pant Nagar facility for which it has already bought 1,000 acres of land from the State Industrial Development Corporation of Uttaranchal (SIDCUL) which is building both Pant Nagar and Haridwar industrial estates.
The Pant Nagar industrial estate has so far attracted an investment of Rs 5 to Rs 6 billion from Bajaj Auto which would establish a manufacturing unit for producing motorbikes. Bajaj Auto is expected to produce 3,000 bikes per day.
Mahindra and Mahindra (M & M) early this year set up its automotive plant for producing three wheelers at the Integrated Industrial Estate (IIE) in Haridwar and also indicated that it would expand its unit further.
The plant is the company`s fifth full-scale automotive plant which has been constructed with a total investment of Rs 700 million that also includes its ancillary Neel Metal Product, exclusively set up for M & M to supply cabs, cargo bodies and other sub-assemblies and aggregates.
The plant is primarily set up for manufacturing of three wheelers of different load capacities and ranges. It will initially produce 30,000 three-wheelers per year, which will soon be ramped up to 50,000.
Out of the 364 companies which propose to set up their units in Pant Nagar, nearly 227 of them have already got possession of their industrial plots. Almost 107 industries are under construction, while 20 companies including Dabur and Nestle have started production.
Motorbike giant Hero Honda is also believed to be planning to set up its unit in the state.
News Source: IRIS NEWS DIGEST http://www.myiris.com
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