Caparo to set up Auto and Aerospace Component Manufacturing Park in Nellore

Hyderabad: Caparo group of UK, founded by Lord Swraj Paul, signed a Memorandum of Understanding with the Andhra Pradesh Government on Saturday, to set up an Aerospace and Automotive Components Manufacturing Park in Nellore District of Andhra Pradesh, India.The MOU for this Rs 3500 Crore facility was signed in the presence of Chief Minister Mr. Y.S.Rajasekhar Reddy by the state Industries secretary Mr.Sam Bob and Managing Director of Caparo Engineering India Pvt.Ltd, Mr. Sunil Pahilajani. The government agreed to allot 2,000 acres to the company at the rate of Rs. 1 lakh an acre.

Sunil Pahilajani said that around 50,000 tonne of stamping work and 30,000 tonne of forging work will be done in the first phase of production which will start 15 months from now. Work on the facility is expected to commence in March this year. Under the state industrial policy, the company will get many fiscal incentives. Pahilajani added that Caparo would invite more and more companies to be part of the facility and that the company would provide base for them by offering a wide range of technologies.Naidupet is a strategic location for the park considering its proximity to Tamil Nadu's auto industries and access to Chennai and Krisnapatanam ports.The new manufacturing park, coming up in 2000 acres in Naidupet of Nellore District, would provide employment for 10,000 people. First phase of the project is scheduled to be complete in 18 months from now at an estimated cost of Rs.1000 Crores, providing employment opportunity to 2500 people. With a range of auto component technologies under one roof, the company aims to create a base for car companies and also consolidate aerospace technologies at one location. A Special Economic Zone for Auto and Aerospace components would occupy 500 Acres in this facility. More Auto and Aerospace manufacturers would be invited to set up manufacturing units in this Special Economic Zone.Andhra Pradesh Government gave the land at Rs.1 lakh an Acre and also gave all possible incentives for Caparo to establish the park in the face of stiff competition from Tamil Nadu. Ms. Geeta Reddy, the Industries Minister of AP told that the foundation stone would be laid in March 2008.Headquartered in London, currently Caparo's operations are located at over 50 sites in the UK, North America, India and Spain with 1 Billion Euro turnover.
Last Updated ( Monday, 07 January 2008 )