Peugeot Citroen surrenders right to property meant for their India facility

French automakers PSA Peugeot Citroen had all intentions of setting up a plant at Sanand Gujarat but unfortunately that will not come about as planned. Peugeot have surrendered their right to the property on which they were planning to invest Rs.4000 crores in order to set up a plant on a 600 acre area.

This decision was taken due to the fact that the company would like to concentrate on operations in their home base, which at present, is undergoing tremendous financial constraints and hence investing in a new venture does not fit into their plan at the moment. The company has already defaulted in payments to the Gujarat Government and though the land was offered to them at a reasonable price, the commitments could not be met on time due to which the deal has been called off.

Peugeot was planning this plant in order to cater to the needs of ASEAN countries and Australia, however company sources have confirmed that there are no such plans as on date and will probably be reviewed once again when financial situations improve or in the next four to five years.

Source: ET