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Honda Cars have received the environment clearance for a Rs 1,577 crore expansion project at its Tapukara plant in Rajasthan.
Honda Cars India Ltd (HCIL) wants to expand the production capacity at the Tapukara plant in Alwar district along with indigenisation of various car parts to reduce the cost of its products.
The company's proposal was first examined by an expert panel last month and based on its recommendations, the environment ministry gave the go-ahead to the expansion project.
The environment clearance has been given subject to the compliance of certain specific and general conditions, the ministry said in a letter issued to HCIL. PTI has reviewed a copy of the letter.
The proposal is for enhancement of aluminium melting from 20,000 tonnes per annum (TPA) to 30,000 TPA, propane storage from 50 tonnes to 100 tonnes and power back-up from 4.9 MW to 37.3 MW at the existing premise of Tapukara plant.
HCIL has informed that it has a total land area of about 17.68 lakh square metre which is enough for the proposed expansion. Total investment would be Rs 1,577 crore.
Among conditions specified, the company has been asked to develop green belt in 33 per cent area to mitigate the effects of fugitive emissions and ensure plants operate on a zero- discharge concept and treated water be recycled and reused.
Besides Tapukara, HCIL has another manufacturing facility at Greater Noida in Uttar Pradesh. The combined production capacity is nearly 2.4 lakh units per annum.
The company is seeing a strong sale momentum this year. Its domestic sales rose 21 per cent to 55,647 units during April-July of the ongoing fiscal from 45,880 units in the year-ago period, as per the company's data.
HCIL sells compact car Brio, compact sedan Amaze, mid-sized sedan City, premium hatchback Jazz, premium sports utility vehicle CR-V, among others.