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After Tata Motors, Ford and Maruti Suzuki, Gujarat government has now signed a state support agreement (SSA) with Honda Motorcycle & Scooter India Pvt. Ltd. (HMSI) for the latter's Rs 1100 crore two wheeler plant.
To be commissioned by December 2015, the said plant will see a two-wheeler manufacturing capacity of 1.2 million per annum, taking HMSI's total capacity to close to six million per annum. The company has three other plants, one each in Haryana, Rajasthan and Karnataka.
Signing the SSA agreement, Keita Muramatsu, President & CEO, HMSI stated the plant will see a total investment of Rs 1100 and will generate direct and indirect employment for 3000.
"This is HMSI's fourth plant in the country and will generate direct and indirect employment for 3000. Around 22 of our suppliers will also set up their plants which will increase investment and employment in Gujarat further. We will also initiate CSR activities, especially around skill development," Muramatsu said.
According to Muramatsu, HMSI will focus on manufacturing scooters, especially the company's one of the most successful models 'Activa' from the Gujarat plant.
Speaking about the plant, Anandiben Patel, chief minister of Gujarat said that the plant will come in the Vithlapur area and will be seen as another step towards making Ahmedabad an auto hub.
"After Tata Motors, Ford and Maruti Suzuki near Ahmedabad and Hero Motors in Halol, the recent foray of auto majors with now HMSI is going to make Ahmedabad and its periphery an auto hub in the coming days. With the Narmada canal also reaching to these regions, there is not only industrial growth but also growth in agriculture and irrigation which is a three-pronged development," said Patel.
Meanwhile, Saurabh Patel, minister of finance, Government of Gujarat said that post Prime Minister Narendra Modi's visit to Japan, there have been an increase in enquiries from Japanese firms for coming to the state of Gujarat.
"The new plant by HMSI augurs well in the wake of the PM calling for 'Make in India'," said Saurabh Patel.
