Peugeot keen on India even after losing 200 acres
Peugeot is still keen on setting up a facility in India — specifically, at an upcoming automobile hub in Gujarat. The sale of 200 of the 584 acres land earlier allotted to it still leaves it with 384 acres, which is “enough to build two plants.” A company spokesperson told FE: “Peugeot and Gujarat continue to work together. Land is still available to us.” He also indicated that plans (for India) had just been rescheduled.
Gujarat recently sold off around 200 acres of land allotted to Peugeot at the time of the signing of its State Support Agreement in 2011 for setting up a R4,000-crore facility in Sanand with an initial capacity of 1.7 lakh cars. A senior government official told FE that Peugeot returned the land rights in September 2012 as it was unable to pay for the land thanks to its financial woes back home.
“We have told Peugeot that they will be allotted land whenever they plan to commence their manufacturing facility in Gujarat,” the official said, claiming the land surrendered was the state government’s and it was free to “to do with it what it deems fit.”
Peugeot has thrown its weight behind one of chief minister Narendra Modi’s pet projects. It is one of the prime
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