Hyderabad: UK based-Caparo group, founded by Lord Swraj Paul, signed a memorandum of understanding with the Andhra Pradesh Government on Saturday, to set up an aerospace and automotive components manufacturing park in Nellore, a district of the southern state of Andhra Pradesh.
The MoU for this Rs3500 crore facility was signed by the state industries secretary Sam Bob and managing director, Caparo Engineering India Pvt Ltd, Sunil Pahilajani. The government agreed to allot 2,000 acres to the company at the rate of Rs1 lakh an acre.
According to Pahilajani, around 50,000 tonnes of stamping and 30,000 tonnes of forging will be produced in the first phase of production, due to start in 18 months time. Work on the facility is expected to commence in March this year.
Pahilajani added that Caparo would invite other companies to be part of the facility and also provide a base for them by offering a wide range of technologies.
The new manufacturing park, coming up in 2000 acres in Naidupet of Nellore District, would provide employment for 10,000 people. The first phase is scheduled for completion in 18 months at an estimated cost of Rs1000 crore, and will generate employment opportunities for 2500 people.
The park's location at Naidupet is strategic, given its proximity to Tamil Nadu's auto industries and access to the ports of Chennai and Krisnapatanam.
According to company officials, a Special Economic Zone for auto and aerospace components would occupy 500 acres in this facility. The company would seek participation from other auto and aerospace manufacturers in the Special Economic Zone.
Headquartered in London, Caparo's operations are located at over 50 sites in the UK, North America, India and Spain and the group has a turnover of Euro1 billion.