China’s SAIC Motor Corporation Limited (SAIC Motor) will be talking over the defunct General Motors plant at Halol in Gujarat. The move, according to state government officials will attract an investment of Rs 3,000 crore to the region located in Panchmahal district.
A memorandum of understanding (MoU) in this regard was signed between officials of Shanghai-based SAIC Motors India Limited and the state government at Gandhinagar on Wednesday. “The GIDC land which was earlier occupied by General Motors will be transferred to MG Motor India (Indian subsidiary of SAIC) for a fee. They will be making a formal approval for the same on Thursday,” said MK Das, principal secretary, Industries Department.
“SAIC will be investing around Rs 2,000 crore at Halol. Apart from the Chinese firm, five more auto ancillaries will be coming to the Halol. So together, the investment will be around
Rs 3,000 crore. This has been mentioned in their DPR (Detailed Project Report),” Das added. The auto-ancillaries who are expected to follow SAIC are Yang Feng Automotive Ltd, Huichoung, Waling Industry, Ling Yun and Sevic, according to a state government release.
“They were very keen to begin operations and we have assured them that the approvals will be granted very soon,” the official told The Indian Express after the formal agreement was inked.
The company is expected to commence vehicle production by 2019. It will employ around 1,000 workers and
will initially produce 50,000-70,000 cars.