Myanmar bound: The Tata plant will be funded by a line of credit from the government of India
INDIA’S largest vehicle maker Tata Motors said today it signed a contract with Myanmar Automobile and Diesel Industries to set up a heavy truck plant in the military-ruled country. The new plant would be set up at Magwe, nearly 480km (300m) from Yangon, and will be operational in the last quarter of the financial year ending March 2011, it said in a statement in Mumbai. Myanmar, which has been ruled by the military since 1962, is under economic sanctions by the US and Europe because of its human rights record and long-running detention of pro-democracy leader Aung San Suu Kyi. But the impact of the sanctions has been weakened as neighbours such as China, India and Thailand invest billions of dollars, particularly in its oil and gas industry. Tata Motors, which owns the formerly British brands Jaguar and LandRover, said the plant would have a capacity of 1,000 vehicles per year, which could be expanded to 5,000 vehicles. No financial details were given, but the plant will be funded by a line of credit from the government of India.
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