China's FAW keen on auto manufacturing unit in West Bengal

KOLKATA: First Automobile Works (FAW) of China has evinced an interest to set up an automobile manufacturing unit in West Bengal. A FAW delegation on Monday called on chief minister Buddhadeb Bhattacharjee at Writers' Buildings.

Earlier in November 2008, senior FAW officials had visited the Tata Motors' abandoned project site at Singur to explore the possibility of setting up an automobile unit there. FAW can also hold talks with the Tata Motors to take the abandoned Nano site in future.

A senior official of the chief minister's secretariat told newsmen after the meeting: "FAW is yet to submit a formal proposal to the state government, but it is interested in setting up an automobile unit in West Bengal. The company officials have already visited Singur and liked the site. They have informed us that around 600 acres would be needed for setting up the unit. They can also hold talks with Tata Motors to take the abandoned facility of the latter at Singur."

However, since the state government leased over the 645.67 acres for 90 years to Tata Motors at Singur, FAW could not directly take over the land from Tata Motors. If Tata Motors returns land to the state government FAW can approach the state government for possession of the land. However, state commerce and industries secretary Sabyasachi Sen said that if Tata Motors wanted to continue the lease, which is renewable in every year, the state government will not have any objection. Tata Motors will have to pay its annual lease rental by mid-June.

Regarding the visit of five-member FAW delegation, Sen said, "The company is now conducting a study on the Indian market. After completing the study, FAW will submit a proposal to the state government."

FAW manufactures small cars, trucks as well as buses. The company has already signed an agreement with the Ural India for setting up an automobile unit to manufacture small cars, trucks and buses in West Bengal. In the first phase the company is keen to manufacture trucks and buses in the first phase. In the second phase, the company wants to introduce a Rs1.6 lakh small car in the Indian market.

Ural India chairman J.K. Saraf, who accompanied the FAW delegation during the meeting with the chief minister, said, "FAW will manufacture low floor buses and mini trucks in collaboration with the Ural India now. The buses and trucks will be manufactured at Ural India's existing facility at Haldia.

We have sought additional 300 acres land adjacent to our existing facility from the state government." The low floor buses will be launched in the market by first week of June. A FAW delegation will revisit West Bengal in 10 days.