The Hindu Business Line : Hinduja group plans LCV plant, revival of Vizag power plant

The Hinduja group has evinced interest in locating a light commercial vehicle (LCV) plant and reviving its 1,000-MW coal-based projects in Andhra Pradesh.

The group headed by Mr Prakash Hinduja met the Chief Minister, Dr Y.S. Rajasekhara Reddy, and the industry department officials and held discussions.

The LCV plant, in the form of an assembling facility at Tada in Nellore, and the revival of the power plant in Visakhapatnam, which was first proposed nearly a decade ago, figured prominently in the discussion.

Though details were not immediately available, the 1000-MW power plant could possibly mean an investment of Rs 4,000 crore to Rs 5,000 crore, and an LCV unit could entail an investment of about Rs 1,000 crore.

The Hinduja team had proposed a plan to locate a LCV plant near Tada, which would be an ideal location and closer to their existing plant in Chennai. According to sources, the Hinduja representatives had come up with a proposal to set up a special economic zone (SEZ) in the State for manufacturing units, and this vehicle plant could be one such in the proposed SEZ. The Hinduja power project was witness to price revision and was later done away since the project cost was much higher compared to the NTPC Simhadri plant.

The Rs 6,053-crore Hinduja group-owned Ashok Leyland Ltd had earlier this year indicated its interest for capacity expansion at its existing plant and the move to set up a LCV unit to tap into the growing market in that segment.

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