| The Memorandum of Understanding (MoU) to this effect was signed by KOEL Chairman and Managing Director Atul Kirloskar and Industry Secretary V K Jairath. Industry minister Ashok Chavan, Chief Secretary D K Sankaran and other senior officials from the state government and KOEL were present. |
| The project has been granted the mega project status under the state government's mega project policy which allows such ventures to get tax sops like exemption from stamp duty, power purchase duty, octroi and other local taxes. |
| The commercial production of diesel generation sets will begin in September this year and oil engines will start rolling out from the facility in April next year. Project will be spread over some 200 acres and it will create 750 to 1,000 direct jobs and 2,500 indirect jobs in the region. |
| Speaking to reporters after signing the MoU, Kirloskar said that the facility will be slightly bigger than company?s Pune facility which manufactures 80,000 engines per annum and the company will manufacture engines between 250 KVA to 600 KVA engines at the Kagal facility. |
| Presently, the company earns 15 per cent of its revenues around Rs 300 crore from exports and we expect to double the revenues in terms of percentage from export within the next five years, he said while replying to a query. |
| Replying to a question, Kirloskar said, "Around Rs 300-350 crore in the project will be invested through raising money in the debt market and rest will come from companies internal accruals." |
| Apart from putting up the EoU at Kagal, we will also develop supplier park, where our important vendors will be invited to put up their units and who will make us 'just in time' deliveries and KOEL will provide all the infrastructure to these suppliers |
| The greenfuel-based engines and marine engines are the next big thrust areas for our business operations of the KOEL, Kirloskar said. |
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