French Auto Car Major PSA Peugeot Citroen is likely to announce soon his plans to establish a production plant in Bol Vilage of Sanand Taluka, with an investment of Rs 4000 crores. “Peugeot is likely to ink an agreement with the Government of Gujarat this week to build the plant. The country is necessary for the plant is about 150 hectares, “one top state official said. Senior officials of PSA had met Chief Minister Narendra Modi in last June.

A senior official for the Office of the Chief Minister said that a corporation has invested in Gujarat after a visit to places in Tamil Nadu and Andhra Pradesh.

Notice is likely to be in three days, officials said. “Delegation Peugeot, including Gregoire Olivier, CEO (Asia Operations), and Frederic Fabre, CEO of PSA Peugeot (India project), will be coming to Ahmedabad on Thursday to sign a letter of intent with the car project “he said.

Bikes and Carmakers of passenger is likely to be reserved for the district in March, Ford Motor plant Sanand, 40 km from Ahmedabad, is also home to the Tata Nano project Motor.

This is Peugeot’s return to India after a decade. Previously, it had a partnership with the erstwhile Premier family and PAL Peugeot formed a joint venture in India. It retired in 2001 as a joint venture. Now the company plans to manufacture medium-sized sedan in Gujarat, three lakh cars per year capacity.

A Peugeot delegation met Chief Minister Narendra Modi two months ago and had the opportunity three places, which included Sanand and two locations in central Gujarat, which has a huge land bank.

Sanand came to the limelight after Tata Motors Nano mother plant was transferred from Singur in West Bengal.

The city has received another shot in the arm when the fourth car manufacturer Ford Motors has signed an agreement with the State Government on 26 July to establish its plant in Sanand 5000 crore. The Nano factory is set along 1,100 hectares, while Ford was granted 400 acres by the state government.

Now Peugeot decides in favor of Sanand, the city strategically along the proposed Delhi-Mumbai industrial corridor will see further changes, because of its links with roads, railways and ports of Kandla and Mundra as most important.

Gujarat has the largest General Motors plant in India Halol near Vadodara. Maruti Suzuki India, also announced the establishment of its second plant in Gujarat, which has expressed an interest in Bajaj Auto and Hero Honda (now Motocorp Hero) as well.