CM urges industry captains to set up units in AP

Hyderabad, Apr 30 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy tonight urged the captains of industry to set up their manufacturing units in the state.

Laying the foundation stone for the Rs 5000 crore MLR Motors' car project here, the first in the state, he said "the state has produced world class leaders in the various sectors including pharmaceuticals and I am sure the MLR will come out with a world class car at a competitive price".

"The project work will start this July and the first car will roll out in January 2009," Company Chairman B V R Subbu said.

The first phase of the project would cost Rs 1250 crore and the investment would be increased in a phased manner to Rs 5000 crore in the next five to eight years, he added.

Acknowledging the critical role played by the state government in starting the project, Company Director M Lokeswara RAo said the state had good logistics infrastructure needed for an automotive unit.

Major Industries Minister J Geeta Reddy said the long-cherished dream of the state to have its own automotive unit had been realised due to the relentless efforts of visionary Chief Minister.

"I am extremely delighted that the promoters have selected backward Gajwel in Medak district for the project." Later, talking to reporters here, Mr Subbu said the company would come out with four-wheeler micro commercial vehicle by January 2008.

To start with, the plant would have a production capacity of 1,20,000 units, including both petrol and diesel variants, he said, adding that the company would provide direct employment to 6000 people.

UNI