Punjab govt gives green signal to Volkswagen

Chandigarh, June 8 (UNI) The Punjab Government today gave its nod to the Rs 1500 crore car manufacturing project to be set up by German automobile major Volkswagen in the state.

The unit would be set up at any of the three sites available at Ropar, Nabha in Patiala district or Ladowal in Ludhiana district, an official spokesman here said.

A six-member high powered delegation led by Volkswagen India Project, Head Peter Walters, today called on Chief Minister Capt Amarinder Singh to finalise the modalities to establish the project.

Taking part in the deliberations, Capt. Singh said this project would manufacture a wide range of cars with in a range of Rs four lakh to Rs ten lakh.

The annual turnover of the project is expected to be Rs 7,000 crore with a manufacturing capacity of one lakh cars per year.

Capt Singh said that this project would have a direct employment potential of 5,000 jobs besides indirect potential of 50,000 persons and would also give fillip to the dormant auto ancillary units.

The chief minister assured the delegation that the state government was committed to provide all facilities and incentives to this project as available to the other projects in Punjab or other state.

These incentives would include provision of land, infrastructure assured power and water supply and capital subsidy.

The details of the project were being finalised and a Memorandum of Understanding would be signed soon, he said.

UNI PS CS RS1609