German firm Liteauto GmbH plans to invest ₹1,500 crore to set up an advanced design and manufacturing facility in Telangana.
On Monday, the Magnesium alloys automotive component maker and Telangana government signed a memorandum of understanding in the presence of Industries and IT Minister K.T. Rama Rao and German Ambassador Walter J. Lindner, at a German Investors’ Summit in the city.
Managing Director of Liteauto India Bala Anand Jeldi said the project is a part of the euro 600 million investment the German firm intends to make globally on creating capacities amid growing demand for the products.
Most of the euro 180-200 million earmarked for India is expected to be made in Telangana, Mr. Jeldi said, adding a tectonic shift away from fossil fuel-based automobile engines to battery systems and hydrogen vehicles is driving the demand.
Magnesium is lightest of all structural materials, he said. Almost all the prototypes tested by the German firm were made in Telangana, where the pilot project has been in operation for about one year now. The investment in the State is to be made in two phases and facility, to be established on 100 acres, will generate 9,000 direct jobs and twice as much indirect employment opportunities.
Addressing the Summit, the Minister highlighted initiatives of the government to support industrial development, including TS-iPASS policy of time bound clearances for projects. He said the approach is also to either match or better the incentives offered, to those setting up projects, in other States. Telangana government is also open to creating a cluster for German industrial investments.
Industries and IT Secretary Jayesh Ranjan said a delegation led by the Minister will be visiting Germany next month. Mr. Lindner said the Summit is an attempt to enhance awareness of Telangana among German investors.
