HYUNDAI Motor India (HMIL) may invest additional Rs 4,000 cr into Chennai unit

Co To Increase Capex To Rs 7,000 Cr To Avail State-Offered Benefits

HYUNDAI Motor India (HMIL) plans to pump an additional Rs 4,000 into scaling up its total capex to over Rs 7,000 crore by 2010 at its facility near Chennai. This may help the company avail incentives offered by the Tamil Nadu government under the new ‘Ultra Mega Integrated Automobile Projects’ policy. The state government unveiled the ‘Ultra Mega Automobile Policy’ after bagging the Rs 4,000-crore Mahindra-Nissan-Renault threeway joint venture’s greenfield project near Chennai. The policy is expected to extend the package to other automobile projects meeting the investment target. “We will be investing well over Rs 4,000 crore into our facility near Chennai by 2010. This will include our current and future investments,” H S Lheem, the MD of HMIL, said on Monday, after the first batch of Hyundai Getz Prime cars were flagged off for exports to Germany at the Chennai Port. “We have already invested around Rs 3,500 crore at the existing facility, including on expansion,” an HMIL official added. According to a state government order issued on February 26, 2007, Ultra Mega Integrated Automobile Projects are either new or expansion projects that have engine plant, press shop, body shop, transmission line, assembly line, paint shop and other features. They can be independent or in consortium or JV mode in the same location with an investment of not less than Rs 4,000 crore. This investment can be made in seven years from the date of signing an MoU with the government or any other date specified by the government. The sops to be extended include land allotment at concessional price, 100% exemption from stamp duty, provision of power supply through dual feeder lines by TNEB with the cost of the feeder lines being borne by the government/TNEB and exemption from electricity tax for 10 years for both TNEB and captive power. The scheme also offers a slew of tax incentives such as refund of gross output VAT and CST without any set-off for 21 years or up to 115% of eligible investment. Earlier, Mr Lheem said 4,000 Getz Prime vehicles - in 1.1, 1.3 petrol and 1.5 diesel versions - are being shipped to Germany. “We will soon introduce these same quality Getz Prime in India and will launch both the petrol and diesel versions.”

Chennai port to offer multi-level car park

Chennai Port Trust chairman K Suresh has said four of the seven car carriers, which the port had sounded on its move to establish a multi-level car parking facility, have responded positively. The port trust is likely to make an announcement soon. He said at present, 60,000 sq ft of space is required to park 6,000 cars. With a multi-level car park, a mere 10,000 sq ft is enough to park the same number of cars. Mr Suresh said the Chennai Port plans to build two more multi-level car parks, and offer passenger amenities. “It will be complete with a shopping mall and food courts and these facilities will also be thrown open to the public to make the project viable,” he said. H S Lheem at the flagging-off ceremony of 'Hyundai Getz Prime' at Chennai Port on Monday.

Courtesy: EconomicTimes
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