Japanese automotive major Honda Motor is all set to come up with a new car manufacturing plant in the Indian state of Gujarat, moving towards inking a state support agreement (SSA) with the government by next four weeks.
The Indian subsidiary of the automotive giant, which is in talks with Industry Extension Bureau (IndextB), is already poised for getting the requisite land for setting up the plant at Vithalapur, about 80km from Ahmedabad, a report by The Times of India said.
Industries commissioner Mamta Varma said: "The state support agreement is likely to be signed in the next three-four weeks with Honda Cars India."
The initial investment by Honda is said to range between $345m and $392m, with the final figure expected to notch up to $628m.
To be placed under 'Mega Project' in accordance with the state government's new Industrial policy, the manufacturing unit will annually make 1 lakh to 1.25 lakh units in all probabilities.
The new facility is regarded as the second such investment in the Indian state following the foundation stone laying ceremony for a scooter unit in Vithalapur that would entail an investment of INR1,100 crore.
Two other places in Gujarat - Sanand and Hansalpur - have emerged as a destination favored by automakers in the country and abroad.
