| Finally first car project inaugurated in Hyderabad |
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Chief Minister Y.S. Rajasekhara Reddy Monday laid the foundation stone for MLR Motors, the state's first car project. Coming up on 225 acres of land near Toopran in Medak district about 50 km from here, MLR Motors is expected to roll out its first car in 2009. It was a dream comes true for Reddy whose government had failed in its efforts to convince German automakers Volkswagen to set up a car manufacturing plant in the state.
B.V.R. Subbu, chairman MLR Motors, said the project outlay for the first phase was Rs.12.5 billion while the overall investment in the project would be Rs.50 billion. He said the design for the car would be ready by July 2007 and the production would start 15 months from then.
'We believe we have the capacity to build world-class cars,' said Subbu. M. Lokeshwar Rao of Lokesh Machines Ltd (LML) will hold 30 percent equity and Subbu will hold 21 percent equity in the company, while foreign institutional investors and others would make up the balance.
'It was our dream to see that a motor car project gets established in Andhra Pradesh. In spite of the best efforts by the government we could not get an international company (to set up a plant),' said Reddy without naming Volkswagen.
Volkswagen had dropped its plans to set up a plant in Visakhapatnam after a corruption scandal involving its former India representative Helmut Schuster. The German major has announced plans to set up a plant near Pune in Maharashtra.
'I am very glad to see our own talented people taking up the challenge. Subbu and Lokesh proved that local entrepreneurs are not inferior to anyone,' Reddy added. 'I am confident that this combination will come out with a world class environment.' Hyderabad-based LML makes engine heads and other mechanical components for Ashok Leyland, Mahindra and Mahindra and other companies while MLR Motors is a well-known in the Indian automobile industry and its chairman was a former president, Hyundai Motors India.             |