The Hindu Business Line : Ashok Leyland-Nissan projects to come up in more TN locations

Chennai, Sept. 1 The Ashok Leyland-Nissan joint venture has sought the Tamil Nadu Government’s permission to set up production facilities spread across a few locations, according to sources in the know.

The joint venture for manufacturing light commercial vehicles, drive trains and technology development initially envisaged two manufacturing locations both located in Kanchipuram district.

Subsequently, the company has decided to set up the facilities spread across three or four locations, according to sources in the know.

Senior officials in Ashok Leyland declined to comment stating that the partners had agreed to make only joint statements on the project.

Incentives package

Following a Cabinet meeting on Saturday, the State Government had said that it has approved ‘some changes’ in the structured package of incentives extended to the Ashok Leyland and Nissan projects.

The sources said that these changes relate to the number of locations where the project was to come up. Initially, two were approved to come up at the Pillaipakkam industrial estate near Sriperumbudur. But, now, the companies were seeking clearance to set up the manufacturing facilities in two more locations – possibly Hosur and Ennore.

Last August, Ashok Leyland and Nissan announced a tie-up to set up three joint venture projects to produce 200,000 light commercial vehicles a year, a power train manufacturing unit and a third for technology development, with a total investment of Rs 4,150 crore.

The State Government approved this project in February last. The production is expected to start in 2010-11.

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