Xenitis taps Andhra for Rs 1lakh car unit

Xenitis group of companies, makers of "Amar PC", is exploring the possibility of stepping outside West Bengal for its sub-one lakh car project.

Xenitis chairman, Shantanu Ghosh had a meeting with Praveen Kumar, sector head-AP invest, the nodal agency of the government of Andhra Pradesh, for a discussion on the proposed project.

Praveen Kumar said, it was preliminary discussion to understand the company's requirements. Though Kumar declined to comment on the incentive package that could be offered to Xenitis, in an earlier letter, he mentioned that the agency could work out a customized package for the company.

Xenitis has asked for a written offer from the AP invest, after which it would come to a decision on the location for the project. Ghosh said, Xenitis would have to decide over the next three months since the car would roll out by end of 2008. So far, the group's investments have been in West Bengal.

Ghosh said, the company had decided to locate the project in West Bengal, when the Andhra Pradesh government showed interest in it.

Earlier the group was supposed to invest in a semi conductor facility in Andhra Pradesh but the project was abandoned and the relationship was being revived with the small car project.

Ghosh made it clear that the decision would be based on the incentives offered by the Andhra Pradesh government or the West Bengal government. He said that in a sub-one lakh car project, government support was of paramount importance.

The investment in the project would be around Rs 1,200 crore, of which Rs 800 crore would in the first phase. The total land requirement for the project would range between 300-500 acres, which would also include ancillary units.

Xenitis would seek for an SEZ status for the project. The Andhra Pradesh government has offered land in an SEZ.