Tata Motors Dharwad Bus Plant Receives Karnataka Govt''s Approval

Pune: The Karnataka Government has given Tata Motors Ltd all the necessary clearance to start work immediately on a facility to manufacture luxury buses and vans at the Belur Industrial Area near Dharwad. It may be recalled that Tat Motors had declared the forming of a 51:49 joint venture company with Brazil-based bus maker Marcopolo SA last year for the manufacture and assembly of fully built luxury buses and coaches in India.

A Karnataka Government order stating that Tata Motors can start work on the massive, three-phase plan to manufacture luxury buses, vans, light commercial vehicles and components and parts in association with joint venture partners at Dharwad was issued on Sept 3. In addition to granting several concessions to the Rs 3,000-crore project, the Government has sanctioned the auto company''s request for an additional 300 acres to put up a vendor park for the manufacture of various parts, components and sub-assemblies. The first project (luxury buses and their components) involves an investment of Rs 325 crore in two phases by Tata Motors, and around Rs 90 crore by vendors. The second project manufacture of LCVs, vans and their components comprises a financial outlay of Rs 2,500 crore in three phases, and production will start by early 2011.