Kirloskar signs MoU with Maharashtra govt

New Delhi, Mar 28: Kirloskar Oil Engines Ltd has signed a Memorandum of Understanding (MoU) with the Maharashtra government to set up a facility to manufacture oil engines and diesel-based generator sets.

The company will initially invest Rs 550 crore for setting up of the plant. The Kagal facility will be 100 per cent export-oriented and is expected to double the company's exports within five years.

To meet the growing demand from its Domestic and Global (DG) customers for engines, Kirloskar is investing in a greenfield engine manufacturing plant which is expected to start production of DG sets from September this year and oil engines from April next year.

The capacity of the plant will be stepped up in phases to 100,000 engines per year, a company statement said today.

The MoU was signed by Mr V K Jairath, Secretary (Industries), Maharashtra government, Mr Atul Kirloskar, Chairman and Managing Director and Mr Rajendra R Deshpande, Executive Director of the company.

Mr Kirloskar said, ''We are happy with the support received from Maharashtra. The investment friendly approach of the state administration and its Industry Ministry has been very encouraging.'' The company has already created world's worlds largest business of diesel generating sets in 3 to 600 kVA range under the brand Kirloskar GREEN.

UNI