M&M, Leyland plan plants in Bengal

After Tata Motors, Mahindra & Mahindra and Ashok Leyland are expected to set up automobile plants in West Bengal in reponse to an initiative launched by the state government under Buddhadeb Bhattacharjee.

Bhattacharjee said here that Mahindra & Mahindra had already entered into a joint venture with a local company and a market study was currently underway.

He also said that Ashok Leyland had got in touch with the government for a project.

"They have directly contacted me," he said. The likely locations for the plants are Haldia, 170 km from Kolkata. Bhattacharjee was speaking on the sidelines of a Xenitis group event, where six memoranda of understanding were signed including one with Guangzhou Motors Company of China for manufacture of passenger cars in the state and an agreement with auto ancillary units for supplying auto components to the proposed four-wheeler factory.

Addressing the gathering, the chief minister said, the state government had identified manufacturing as a focus area with special emphasis on automobiles.

He said, West Bengal was not part of the huge investments that had been made in the sector.

"The state only had Hindustan Motors and now Tata Motors is here," said Bhattacharjee.

According to the Automotive Mission Plan, by 2016 the investment in the sector would be $145 billion from current $35 billion.

Last year, West Bengal bagged the Tata Motors one lakh car project, which was initially shrouded in controversy over land acquisition.

Tata Motors would be investing Rs 1,500 crore in the project and plans to roll out the car in 2008. The capacity in the first phase is 2.5 lakh cars.

The project includes a vendor park spread over 290 acres. The West Bengal Industrial and Development Corporation (WBIDC) and Tata Motors signed a 90-year lease agreement for the 645-acre mother plant.

The state government was now in the process of signing MoUs with the vendors. Tata Ryerson is also setting up a plant in the vendor park to cater to the requirements of the small car project.