Tata may make Rs 1 lakh car in Jamshedpur

Jamshedpur, March 28 | Updated: Mar 29 2006, 05:30am hrs
Tata Motors may choose to produce its Rs 1 lakh car in Jamshedpur. It is at a preliminary stage. They have their expansion plan for Jamshedpur. We are discussing that (Rs 1 lakh car project), said a senior bureaucrat from the states industry department.

A three-member management team from the auto majors Mumbai headquarters, including Mr RS Thakur vice president (finance) and Mr Rajiv Dube, senior vice president (manufacturing & commercial-passenger cars), was in Ranchi recently to submit the companys Rs 1,300 crore proposal and discuss plans with the states industry department officials.

The auto major wants to manufacture light commercial vehicles (LCVs) at a suitable location. Jamshedpur being among its top choices, as it already has a HCV and SPV (special purpose vehicles) manufacturing base here.

Asked which particular LCV models, including cars, are likely to be produced here, the official said: That they are yet to decide. There are three-four models, including the Rs one-lakh car and a small truck which replaces an auto.

As to whether Jharkhand was eager to accommodate Tata Motors expansion project only as per the concessions spelt out in its industrial policy, the senior state official said, no, a special package can also be worked out, which the (industrial) policy also talks about.

A CLOSE CALL
THE HEAD START
Jamshedpur among Tatas top choices
The city boasts of an HCV and SPV base
A good auto component base here another
major plus
HARDSELLING JHARKHAND
CM Arjun Munda taking personal interest in Tata Motors' investment in the state
Jharkhand chief minister Arjun Munda has been taking a personal interest in seeing that the Tata Motors investment comes to the state, though there are other states too trying to woo the auto major. They were here at the invitation of the chief minister, said the senior industry department bureaucrat.

There is no information to share at this stage, was how a Tata Motors spokesperson in Mumbai put it when asked about the project, adding, Tata Motors has a number of projects; it is looking at sites and locations in different states. Jamshedpur already has a good auto components base today -- many of the SMEs (small & medium enterprises) here having graduated from being suppliers & OEMs to Tata Motors HCVs alone to being vendors also to auto manufacturers like Hindustan Motors, GM.