NELLORE : The world's largest car company -- General Motors Corporation (GM) - is likely to establish its mini plant, Spark, soon at Tada in Nellore district.

The new unit will have the capacity to manufacture two lakh cars per year. Besides, the project is expected to create 4,000 jobs.

The plant may become the company's export hub for the region if it sets up its unit by 2007. Team members of the company have already visited the site thrice and have confirmed their inclination to set up a green field plant in Andhra Pradesh, according to a senior official.

Initially, the company held talks with five states and short-listed three -- Maharashtra, Tamil Nadu and Andhra Pradesh. Among them, Andhra Pradesh emerged as the frontrunner for the project, according to sources.

The State Government has already promised same kind of sops being offered to the Volkswagen, 300 acres of free land and an 18-year tax holiday, to the company also.

Meanwhile, Hyundai is also actively considering to set up a unit at Tada for a variety of reasons.

"The company has already set up a unit in Tamil Nadu and it is reluctant to establish another venture in the same State as it would be too expensive. Besides, sops offered by the Andhra Pradesh Government are more attractive than that of Tamil Nadu," he claimed.

Footwear units

Meanwhile, in a significant development, 30 footwear units have come forward to establish their units in Mambattu area, where Apache footwear limited established its unit.

The advisor of the consortium visited the district recently and held talks with officials on establishment of these units.

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