Hero Motors plans 2-seater planes with German firm

New Delhi: Pawan Munjal-run Hero Motors Ltd plans to tie up with a German firm to manufacture two-seater sports planes at a special economic zone, or SEZ, it wants to set up in Madhya Pradesh, a senior company official said on Tuesday
The joint venture will mark the expansion of Hero Group, India’s biggest maker of motorcycles, into aerospace- and defence-related manufacturing. Hero Aviation Pvt. Ltd, a unit of Hero Motors, will be the partner in the alliance.
Hero Motors general manager for projects Ashish Gaur said the 300-acre SEZ the group wants to build at an undisclosed site in Madhya Pradesh will also allow international defence companies to set up shop in the country and take advantage of tax breaks.
The deal with the German company is being readied and is likely to be signed by the end of next month, said Gaur, who didn’t identify the potential partner.
An analyst said issues related to flight safety and air space will need to be addressed before regulatory approvals are given for small, light aircraft that can land even on small air strips.
“If they can pull it off, it will be a start of a new era for India’s individual aircraft ownership aspirations,” said Mark Martin, analyst at consultancy KPMG’s India offices.
The price of such an aircraft could start from Rs10 lakh to Rs16 lakh if it is manufactured in India or built in the country under licence from an overseas company, Martin said.
27/08/08 Tarun Shukla/Livemint

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Categories: Foreign Aug 2008, Indian Aviation- In General Aug 2008, New Aug 2008