Caparo Group to invest Rs 3,500 cr in AP
Caparo Group of UK will be setting up four to five units on its own besides joint venture projects in automotive, engineering and aerospace sectors. Ashok Das reports.business Updated: May 07, 2008 22:00 IST
Chief Minister YS Rajasekhar Reddy would lay the foundation for the Caparo Industrial Park, being set up by the Caparo Group of UK, at Menakur village on Naidupeta mandal in Nellore district on Thursday.
The Chief Minister said that Caparo group would be setting up four to five units on its own besides joint venture projects in automotive, engineering and aerospace sectors. The proposed investment in the project will be about Rs.3,500 crore, in a phased manner. The State Government has allotted 2000 acres of land with all basic infrastructure to the Caparo` group.
To start with, Caparo will set up a luxury bus manufacturing plant in collaboration with Hyundai Motors of South Korea. The buses, meant for sale in the Indian market, for which a technical agreement has already been signed, will start rolling out in July 2009.
Reddy said the Caparo Group, founded in 1968 by Lord Swraj Paul, registered a turnover of one billion euros and has a clutch of over 40 companies operating from over 60 sites in the UK, India, Spain, North America, Canada and Dubai. It has business interests mainly in the manufacture of steel, automotive and general engineering products.
The Chief Minister said the Government wants to develop Nellore district as a major growth centre because of its strategic location and nearness to Chennai. Nellore district is already brimming with industrial activity with the setting up of a shoe industry by the APACHE group. An international leather complex is being set up at Krishnapatnam. A 4000-MW Ultra Mega Power Project and a ‘Kisan SEZ’ are also coming up nearby.
Reddy said his government is trying to attract greater industrial investments and create lakhs of jobs to the unemployed youth. Recalling a Reserve Bank of India report, released last August, which put Andhra Pradesh in the second place next to Gujarat in investments, he said that all efforts would be made to take the state to the top slot.
The CM said that Industrial investments, amounting to Rs.12,350 crore during the last three and half years, provided jobs to 1,72,616 persons. An additional 210 projects entailing investments of Rs.38,671 crore were being implemented. They have an employment potential of 1,30,458.
He further said that a total of 71 Special Economic Zones (SEZs) are coming up in the State. Of them, the Government of India has already cleared 49 SEZs – the highest for any State. They envisage capital investments of up to Rs.35,000 crore and have the potential to create employment to about 25 lakh persons. With Reliance expected to supply gas from September 2008, the State would have sufficient power required for domestic, industrial and irrigation purposes, the Chief Minister said.