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Hyundai plans INR 1000 crore ancillary units in AP

Automobile major Hyundai is set to ink a memorandum of understanding with Andhra Pradesh government to set up a spare parts facility and other ancillary units in the state entailing an investment of over INR 1,000 crore.

According to a senior government official, they had a series of meetings with Hyundai representatives and managed to convince the company to set up units at Nellore a district bordering Tamil Nadu, the state where the South Korean giant has a manufacturing plant at Chennai.

Mr B Sam Bob principal secretary industries told PTI that “The company said it will invest INR 500 crore in the first phase and INR 700 crore in the second phase. In turn, the government will offer 50 acres of land at nominal price in the first phase and same size land in the second phase.”

He said they were yet to receive terms and conditions of the MoU from Hyundai and expect to close the deal before month end. There is no major automobile related industry in the state. This will become a model for other auto makers. Car makers may show interest to set up manufacturing facility once basic infrastructure is in place.

(Sourced from PTI)