The board also cleared port's proposal to invest Rs 110 crore for creating a multi-purpose berth.
Ennore Port Limited (EPL) is set to sign a memorandum of understanding with Nissan Motor for using the port to export cars. The board, which met recently at Chennai, also cleared the port’s proposal for creating infrastructure for the purpose.
Speaking to Business Standard, Rakesh Srivastava, joint secretary, Ministry of Shipping, who was here to attend the board meeting, said the agreement would be signed soon. Initially, the company will export 60,000 cars from 2010, which would gradually increase to 180,000.
He did not specify any time frame in this regard. The board also cleared the proposal to invest Rs 110 crore for creating a multi-purpose berth, which can be used by others apart from Nissan.
He said the ministry was in talks with the salt department, under the industries ministry, for allotting 1,200 acres of its land near the port, which can be used for iron ore and coal traffic. The department has already agreed to give 153 acres, which will be used for creating rail connectivity to the port.
S Velumani, chairman and managing director, EPL, recently said that the car manufacturer was looking at exporting cars primarily to the European market. EPL has decided to construct an exclusive terminal for cars at a cost of Rs 140 crore. The berth’s depth would be 12 metres and enable loading of 5,000 cars at a time, he said.
It may be recalled that French car-maker Renault SA and its affiliate Nissan Motor of Japan had recently signed an MoU with the Tamil Nadu government for setting up a manufacturing facility at Oragadam, 45 km from Chennai.
The French and Japanese partner would invest Rs 4,500 crore ($1,140 million) for the 50:50 joint venture. The original trilateral agreement was signed in February 2007 with Mahindra & Mahindra (M&M) holding a 50 per cent equity stake and the other two automakers 25 per cent each.
The JV, which has been allotted 678 acres, will have an installed capacity to make 400,000 vehicles annually. The facility is projected to launch the first car by 2010.
The alliance will also set up the Renault-Nissan Technical and Business Centre India in Chennai by March-end. The centre will focus on product and manufacturing aspects, R&D, cost management, infrastructure and information system among others.
