FAW group checks out three sites for JV in India

KOLKATA: First Automobile Works (FAW) Group of China is taking forward its tentative plan of investing in an automotive venture in (India's) West Bengal and has checked out three sites, including Singur. The other two locations were Haldia and Kharagpur.

"These were preliminary visits and they will now conduct their technical studies," J. K. Saraf, Chairman of Ural India, told The Hindu.

Mr. Saraf, whose company hopes to partner FAW in this venture, said that an investment of about Rs. 1,500 crore (or about $313.4 million) would be required for the project which envisaged production of one lakh cars. Ural India had already signed an agreement with FAW for setting up an auto unit here. A small car with a Rs. 1.60-lakh ($3,342) price tag is now being discussed. Mr. Saraf along with officials of the State’s apex industry promotion agency had accompanied the FAW team. The Chinese team left on Thursday.  

An official who was with the delegation said that although it was decided to put off the Singur trip, West Bengal government officials were keen to wrap up things.

"They were very keen that the Chinese team make the visit on Wednesday," a source said.