Business Standard

RIICO to develop Bhiwadi as an automobile mfg hub

Image

Announcement Corporate
* To generate investment of Rs 3000 crore and create employment potential for over 7000 people
 
 
* Honda Siel Cars India Ltd. to commence construction of its second car manufacturing plant
 
 
* Hon'ble Chief Minister of Rajasthan, Smt Vasundhara Raje to be the Chief Guest at Bhoomi Poojan ceremony of Honda Siel Cars India Ltd. on July 1st, 2007
 
 
Mumbai, June 29, 2007---The Rajasthan State Industrial Development & Industrial Corporation (RIICO) is all set to make Bhiwadi region of Alwar district, an automotive hub and generate investments to the tune of Rs 3000 crores. With this initiative, RIICO expects to create employment potential for over 7,000 people in the region.
 
 
RIICO has provided 600 acres (approx.) of land to Honda Siel Cars India Ltd (HSCIL) to set up its second manufacturing plant on 350 acres land, an R&D facility on 100 acres and a key ancillary unit on 150 acres, respectively. The auto cluster of Rajasthan (in Alwar district) is third of its kind after Pune and Chennai, producing more than 60 per cent of passenger car vehicles, 55 per cent of motorcycles and 25 per cent of tractors manufactured in the country.
 
 
Honda acquired the land in the Bhiwadi cluster in May 2007 and will commence production of its second car manufacturing plant at Khuskhera with the Bhoomi Poojan (ground breaking) ceremony scheduled on July 1, 2007. The ceremony will be attended by Smt Vasundhara Raje, Hon'ble Chief Minister of Rajasthan, Mr Akira Amari, Hon'ble Minister of Economy, Trade & Industry, Japan, Mr Narpat Singh Rajvi, Minister of Industries, Govt of Rajasthan and Mr Satoshi Aoki, Chairman, Honda Motor Company Ltd, Japan.
 
 
Honda Siel will also have its base of ancillary units in the Bhiwadi region. The plant will have an initial installed capacity of about 50,000 units per annum and later expand up to 2,00,000 to 2,50,000 units per annum. The plant is expected to start manufacturing components by the end of year 2008 and the first car is expected to roll out by the end of year 2009.
 
 
Mr Kuldeep Ranka, Managing Director, RIICO, said, "I congratulate team Honda and wish them success in their new venture. RIICO is proud of its association with Honda and would extend all support to ensure progress, growth and development. The auto and auto components sector in India is witnessing a boom with major national and international manufactures interested in setting up their plants in India."
 
 
"Honda's presence in Khuskhera will encourage more national and international companies to come forward and set up their facilities in Rajasthan. Our state offers, the right kind of infrastructure, requisite resources, land, power supply, work-force, proximity to the national capital to automobile and other companies," he added.
 
 
The presence of automobile majors like Maruti Udyog, Ashok Leyland, Eicher, Hero Honda, Honda Siel Cars, amongst others in the region has facilitated growth of the manufacturing sector in Rajasthan in a major way. Moreover, about 70 auto component units including prominent players like Caparo Fasteners, Climate System, Federal Mogul, Goetze, Hi-Tech Gear, Ocap Chassis, Amtek India, Balkrishan Tyres, and Continental Engines amongst others are also present in Bhiwadi region.
 
 
RIICO has also created an exclusive auto engineering zone in a new industrial area Pathredi in Bhiwadi region, where Caparo Engineering, Shriram Pistons, Pearaylal & Sons, TPS Infrastructures amongst others will set up their automotive units in the near future. It is further acquiring 1200 acres of land in Bhiwadi, for enlargement of auto complex. As a part of an important common infrastructure facility for auto units, RIICO is planning to set up a 'tool room' and 'training centre' in Pathredi.
 
 
Last year, RIICO signed a MoU with JETRO (Japanese External Trade Organisation) for Japanese investments in Neemrana and has also reserved an industrial part for Japanese investments mostly for small and medium auto component sector.
 
 
About Rajasthan State Industrial Development & Investment Corporation Ltd. (RIICO): Rajasthan State Industrial Development & Investment Corporation Ltd. since its inception in 1969 has emerged as a multi-faceted and dynamic institution. It has kept pace with the industrialisation process in providing complete and innovative means of financial and investment support services.
 
 
RIICO is also the sole government agency in the State involved in development of land for industrial enterprises. Large, medium and small scale projects get an easy access to a ready -to- use base with supportive infrastructure facilities in the industrial areas, developed and managed by RIICO. The financial and vital infrastructural facilities provided by RIICO have contributed towards accelerated growth of industrial sector in the State.
 
 
 

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Jun 29 2007 | 12:00 AM IST

Explore News