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Announcement has been made by Peugeot, French car maker that it is going invest the amount of 4,000 crore for establishing the auto manufacturing plant in Sanand. It will be established next to India’s future car unit Tata Nano factory and Ford. For Peugeot, the Gujarat Industrial Development Corporation has also set sideways almost 584 acres of land in Sanand. More 25 acres has been set aside for ancillary industries for supporting the unit. The facility will surely offer both direct and indirect employment to people. Direct employment will be provided to almost 5,000 people. Indirect employment will be provided to 25,000 people.

The manufacturing will begin operating in the year 2016 for manufacturing 1.65 lakh vehicles at first and the company is expecting to export 25% of its vehicles. Furthermore, gearbox and engine developed with latest power training technologies will surely help represent a completely fledged modern industrial automotive facility. It also recommends increasing its capacity to and from 1.65 vehicles to 3.40 vehicles, 3 lakh gear boxes and 3 lakh engines till the year 2020.

After the arrival of Nano and Ford by Peugeot indicates that Gujarat has came out as a worldwide auto center. “More car manufacturing units on their way,” CM Narendra Modi said, adding, “The auto part supply facilities to be developed for them will make Gujarat as one of world’s biggest auto part suppliers. On propitious day of Ganesh Chaturthi, the main car manufacturer of France, Peugeot Citroen signed Rs 4,000 crore with Gujarat Government for setting car manufacturing center in Sanand. Peugeot is also going to set up its international level skill enhancement centre. The land given to Peugeot is a part of 2,251 acres Anand Agriculture University land. Tata Motors has also been given almost 1,100 acre land of the similar University for their Nano car plant. Nearly 400 acre land has been allocated to Ford Motors.

Gujarat Chief Minister said that there are only some locations in our world that have well-known and chief infrastructure for worldwide trade. The first and completely integrated manufacturing center in India is going to include a cut-throat vehicle manufacturing facility putting together, body paint, stamping and assembly with the capacity of 165000 vehicles every year. The construction near Sanand will end by end of the year 2013.

“We are proud to announce this new milestone in Peugeot’s continued global expansion and to have chosen to grow our Indian roots in the State of Gujarat. We view India as one of the most important and dynamic markets in the world, with forecasts of it becoming the third largest automotive market by 2020. Gujarat offers a proactive business environment, excellent infrastructure and is geographically well-positioned to cater to passenger car markets across India” said the Chairman of Managing Board of PCA, Mr. Philippe Varin.