Honda Motorcycle & Scooters (I) Pvt Ltd (HMSI) and the Rajasthan government today signed a Memorandum of Understanding (MOU) for setting up a 2-wheeler plant in the Tapukara Industrial Area of Alwar district.

The Rs 500 crore project will manufacture 6 lakh units annually in the first phase, an official spokesman said here today. Later, the investment will go up to Rs 1,100 crore to ramp up production to 12 lakh units.

Chief minister Ashok Gehlot will be laying the foundation for the project at Alwar on May 31.

The MOU was signed by principal secretary, Industries, Sunil Arora and HMSI president and CEO Shinji Aoyama, as well as Honda Siel Cars India Vice-President Raman Sharma.

Investment and NRI Commissioner Purushottam Agarwal, Industries Commissioner Raj Hans Upadhyay and other senior officers were present on the occasion.

Speaking on the occasion, Rajasthan Industry Minister Rajendra Singh said the prestigious project will generate direct employment for 3,000 persons initially in the first 3 years and indirect employment will be around 10,000 persons.

Furthermore,the project will have a huge spin over effect in terms of a large number of ancillary units being set up to service the main plant, he said. Pareek also said that with a new investment policy in the offing, Rajasthan will become a preferred industrial destination.

Arora said the state government has provided a customised package of facilities and incentives, including industrial land, to the project.