A Karnataka Government order stating that Tata Motors can begin work on the massive, three-phase plan to manufacture luxury buses, vans, light commercial vehicles and components and parts in association with joint venture partners at Dharwad was issued on September 3. In addition to granting several concessions to the Rs 3,000-crore project, the Government has sanctioned the auto company’s request for an additional 300 acres to put up a vendor park for the manufacture of various parts, components and sub-assemblies
According to sources, the first project (luxury buses and their components) involves an investment of Rs 325 crore in two phases by Tata Motors, and around Rs 90 crore by vendors. The second project - manufacture of LCVs, vans and their components - involves a financial outlay of Rs 2,500 crore in three phases, and production will begin by early 2011.The business road map also plans for an annual production of 7,500 buses that can be ramped up to 30,000, while the number of vans and LCVs are pegged at 38,000 units initially.
Source:
Sify
