General Motors, on 3 August 2006, signed an MoU with the Maharashtra government for setting up its automobile plant at Talegaon in Pune district.

The plant to spread over 120 ha (around 300 acres) of land will entail an investment of $300 million (Rs.1,300 crore). The plant that would manufacture the 1,000 cc Chevrolet Spark small car will have an initial capacity of 45,000 cars per year, with a final capacity level of around 1,40,000 cars per year.

The project is scheduled for completion by 2009, is expected to generate direct employment for about 1,000 people and indirect employment to 2,000 others.

Construction activity is likely to start by end-August 2006, with completion expected within 20 months thereafter. Operations are targeted to begin from the third quarter of 2008.

This would be GM's second plant in India; the first being at Halol in Gujarat where capacity is being ramped up from the current 65,000 cars per year to 85,000 cars per year.

By end-2008, GM will have a total capacity of over 2,20,000 cars per year from both its plants.

Also See:

General Motors might favour Maharashtra for new plant (10-Jun-06)

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