BHUBANESWAR: The government on Wednesday signed a Memorandum of Understanding (MoU) with Jamshedpur-based RSB Group for setting up a multi-product automobile component manufacturing project with an estimated investment of Rs. 365 crores at Choudwar in Cuttack district.

The project is likely to be implemented in a phased manner over a period of five year.

MoU signed

The MoU was signed by State Industry Secretary I. Srinivas and Managing Director of RSB Group S.K. Behera at the Secretariat here.

Chief Minister Naveen Patnaik said that the State, which emerged as a mining, metal and power hub in the country, was fast becoming an attractive destination for metal downstream and engineering industries.

Thrust area

The State was promoting automobile and auto-component industries as one of the thrust sectors because of huge multiplier effect they had on direct and indirect employment generation and promotion of ancillary industries, Mr. Patnaik said on the occasion.

He said the project would generate direct employment opportunities for over 2,000 persons in the next five to seven years.

The RSB will put up the unit at the proposed auto complex being developed by Infrastructure Development Corporation of Orissa (IDCO) near Choudwar.

The proposed multi-product auto component complex of RSB Group will consist of a forging unit, a casting unit, an aluminium die casting unit and a machine shop.

The casting and forging units were expected to generate an estimated annual turnover of Rs. 1,600 crores by the end of the fifth year, Mr. Behera said.

This is the first proposal in auto parts manufacturing sector even as the State has attracted investments over Rs. 4,00,000 crores in steel, aluminium and power sectors.

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