Andhra red carpet for Xenitis

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By Staff Reporter in Calcutta
  • Published 30.07.07

Calcutta, June 30: Andhra Pradesh has invited the Xenitis group to set up its proposed small car plant in the state.

A letter written by an official of AP Invest — the nodal agency of the Andhra government to promote industry — to Xenitis chairman Shantanu Ghosh said the best-possible support would be provided for the upcoming project.

“We welcome Xenitis to consider Andhra as the destination for your small car plant. You can enjoy the advantage of being located in the most happening state in the country,” K. Praveen Kumar, sector head of AP Invest, wrote in the letter today.

Kumar said he would visit Calcutta next week to discuss the issue.

Ghosh could not be reached for comment.

Xenitis has already set up a two-wheeler factory in Bengal with technological support from Guangzhou Motors Company of China.

In April end, it signed an MoU with Guangzhou Motors for passenger cars too. However, Ghosh did not disclose any details except that it might come up in Hooghly.

Bengal commerce secretary Sabyasachi Sen said the state government was yet to get any formal proposal from Xenitis on the four-wheeler project.

“It is for them to decide,” Sen said.

The Bengal government had offered a good package to Tata Motors’ Singur small car project. The company also got an offer from Uttaranchal.

Kumar has offered a customised package for the Xenitis project.

“On behalf of the government of Andhra Pradesh, AP Invest will provide the best-possible support to see that your project is accomplished. We assure you that we can work out a customised package for Xenitis,” he wrote.

The letter assumes significance as the agitation against the Tata small car factory at Singur is on the rise again.

The Andhra Pradesh government said some of the best investments in the auto sector such as M&M-Nissan, Rane and Amara Raja have been made in the state.

“Our inherent advantages like availability of state-of-the-art infrastructure, abundance of skilled workers, excellent physical and social infrastructure and, above all, a pro-active government make Andhra Pradesh an attractive destination.

“Andhra Pradesh also has the advantage of being situated in the heart of the country well connected to every part of India,” the letter added.