The Honda Motorcycle & Scooters (I) Pvt. Ltd (HMSI) proposes to set up a two-wheeler plant in Tapukara Industrial Area of Rajasthan's Alwar district. The Rs.500-crore project will manufacture 6 lakh units annually in the first phase. Later the investment will go up to Rs.1,100 crore and the production to 12 lakh units. The ground breaking ceremony (Bhoomi poojan) of the unit, which is hailed as a major breakthrough in investment for the Congress Government in the State, is scheduled for May 31in the presence of Chief Minister Ashok Gehlot.

A Memorandum of Understanding was signed on Tuesday at Udyog Bhawan here between HMSI, Honda Siel Cars (I) Ltd (HSCI) and the State Government on the proposed plant in the presence of Rajasthan Industries Minister Rajendra Pareek. Industries Principal Secretary Sunil Arora, HMSI President and CEO Shinji Aoyama, HSCI Vice President-Director Raman Sharma, Investment Commissioner Purushottam Agarwal, Industries Commissioner Raj Hans Upadhyay and other senior officers were present.

HMSI has state-of-the-art manufacturing and associated facilities spread over 50 acres at Manesar in Haryana with a capacity of 16 lakh two-wheelers per annum. This project has an investment of more than Rs.1,000 crore. Besides, HSCI, a joint venture company between Honda Motor Co. Ltd, Japan and Siel Ltd, has already a car manufacturing facility in Alwar district. After starting with an investment of over Rs.1,000 crores, HSCI has so far invested around Rs.1,800 crore in the unit.

Mr. Pareek expressed satisfaction over the development and said the prestigious project would provide direct employment to 3,000 persons in the first three years itself. Besides generating indirect employment for about 10,000 persons, the project would have a huge spin over effect in terms of number of ancillary units being set up to service the main plant, he added.

Mr. Sunil Arora said the State Government has provided a customized package of facilities and incentives to the two-wheeler units including industrial land. He hoped that the Honda Car project as well as the two-wheeler project would take off within the stipulated time.

HSCI Vice President-Director Raman Sharma said that the company was planning to launch a small car in September 2011 for which it is making investments in terms of localisation in the car project. The components of the engine are already being manufactured there. He also assured that the two-wheeler project will take off in July 2011 as per the schedule.

The Honda Company will also set up a technical school to provide training and employment to the workforce, particularly to local youth.