MUMBAI: Maharashtra has bagged the largest Chinese Foreign Direct Investment in the country, of USD 70 million, through the Sany Group of China for setting up a greenfield project near Pune.
This is the latest among the many investment agreements signed by the State in the last one year in its pursuit to become the most preferred destination for FDI in India.
The Chinese construction machinery manufacturer Sany Group would invest USD 70 million to set up a greenfield project near Pune spread across 100 acres with a production capacity of 15,000 units per annum.
"Sany China had set up the Indian subsidiary Sany Heavy Industry India in 2002 and has achieved a turn over of six million USD. The new plant to be set up should be operational by 2008," Sany Heavy Industry India CEO and MD, Sen He said.
The company is expecting sales revenues to the tune of USD 30-50 million in the first year and also expects the localisation content in all its equipment to be 80 per cent in the next five years, he added.
Sany Industry has already tied up with 300 local units for supply of various spares and parts and has also started buying the chassis from Tatas, the company MD said.
The Memorandum of Understanding (MoU) for the same was today signed between the company officials and the Maharashtra government in the presence of Chinese Ambassadar Sun Yuxi and Sany Group Chairman Liang Wengen.
Sany would produce products ranging from Trailer Mounted Concrete Pumps, Truck Mounted Concrete pumps, Motor Graders, Rollers, Asphalt Pavers, Truck Cranes, Drilling Rig and Crawler Cranes.
"The very fact that the largest investment from China into India is being made in Maharashtra speaks volumes about the attractiveness of the state and the excellent policies and steps ushered in by our government," Industries Minister of Maharashtra, Ashok Chavan said.
This MoU has been signed on the same day, when Chinese President Hu Jintao was in Mumbai to attend an Indo-China Trade Summit and CEO forum to enhance the bilateral relations between the two countries.
The Maharashtra government was working hard to keep pace with the industrial growth in the state and was investing huge amount in creating physical infrastructure and has plans to invest around USD 60 billion in Mumbai alone in the coming 5-10 years, said Chavan.
The state of Maharashtra is developing as an auto-centric industrial belt with the world's top five auto compnaies setting up their base here, he added.
