Ahmedabad, Jan 2 () : Even as Modi gets ready to unveil his projects at Vibrant Gujarat Summit, French car-maker, PSA Peugeot Citroen’s 200 acres allotted to it in 2011 were sold out since there was no activity.
Sanand the much publicized auto hub of Gujarat has Tata Nano coming out with only 25% of its total capacity putting vendors and parts suppliers to cut workforce and reduce output. Peugeot was to manufacture 1,65,000 cars annually and had announced an investment of Rs 4,000 crore for the plant. Modi gave them 584 acres.
Now with many auto majors putting their expansion plans on hold, only small time investors who want around 10 acres are in line. The 200 acres were sold to these investors.
General Motors operates at Halol and Maruti is to set up plant at Hansalpur. With a slowdown in car manufacturing, the spare part manufacturers who were to set shop or already did so have now cut down production. Seeing this, many from the auto industry are just adopting a wait and watch policy.
Vibrant Gujarat Summit in mid-January will see Modi roll out red carpet to the investors both domestic and overseas. His victory is said to be his capacity to bring industries and provide jobs.
Hotels in this city are the happiest lot since bookings from India Inc are pouring in and to gain full occupancy as much as 30-40% discounts are offered.
The idea primarily is to get the business community from outside the State to make their hotel their future destination. Loyalty reward points and many add-on facilities such as free pick-up and drop from airport and rail station as well as to proposed sites offered by Modi are on the cards.
High land prices are acting as a stumbling block for investors even though acquisition is lot more easier than other States. A surcharge of 35% on power for industry is yet another factor that is irking the investors.