PSA Peugeot Citroen, France?s biggest car maker, is planning to invest Rs 1,500 crore for setting up a manufacturing facility in Andhra Pradesh. The state government has offered about 900 acres for setting up a greenfield project, and sources told FE that the company is close to accepting the offer.
According to highly-placed government officials, the company was offered about 900 acres in two places ? Sri City near Tirupati and Srirampuram in Ranga Reddy district. ?A team from the French car major had come along with French President Nicholas Sarkozy. The company executives came and met senior government officials on Tuesday and had conducted the initial dialogue for starting the project with an investment of Rs 1,500 crore in the first phase,? sources said.
As per its initial plan, the company had negotiated tax breaks from the state government and had proposed an investment of Rs 1,500 crore in the first phase. According to the officials, the company has plans to set a greenfield facility for assembly and promote ancillary units around the plant.
A dye manufacturing for car parts, an R&D team for designs, body-building shop, new technologies for a central-controlled room for regular functioning besides a testing unit are also there on the drawing board.
The car maker had shelved plans to expand in India which was planned in association with Mitsubishi Motors during early this year.
The company had exited from the country in 1997 through Premier Auto Limited after a lock-out at its Kalyan facility near Mumbai due to labour strike and subsequently financial crunch.