AP govt inks MoU with UK's Caparo group for aerospace park

HYDERABAD: The Andhra Pradesh Government on Saturday signed a memorandum of understanding with UK-based Caparo Group for setting up an automotive and aerospace park in Nellore district of the state.

The Rs 3,500-crore facility would come up at Naidupet in Nellore district, bordering Tamil Nadu, to provide a base for attracting car manufacturers.

The MoU was signed by Managing Director and Chief Executive Officer of Caparo Engineering (India) Pvt Ltd Sunil Pahilajani and the state Industry Secretary Sam Bob in the presence of Chief Minister Y S Rajasekhar Reddy.

The government earmarked 2,000 acres for the project at a nominal rate of Rs one lakh per acre and also extended a string of incentives to "match those existing in Tamil Nadu", state's Major Industries Minister J Geetha Reddy told reporters.

Of the total 2,000 acres, about 500 acres would be set apart for developing special economic zone for automotive and aerospace industry, she said.

"It will be a world-class facility for automotive and aerospace components. We will invite more and more companies to be part of the facility and we will provide base for them by offering a wide range of technologies," Pahilajani said.

In the first phase of the project, Lord Swraj Paul- founded Caparo Group would invest Rs 1,000 crore and provide direct employment to about 2,500 people. When completed, the project will provide jobs to 10,000 people.

According to officials, the foundation stone for the facility would be laid in March this year. Headquartered in London, Caparo Group has operations spread over 50 countries with a turnover of one billion euro.

With business interests predominantly in steel manufacturing, automotive and general engineering products, the group's other activities involve material testing services, hotels, film distribution and private equity investment.