Renault a French automaker has been denied a land for building its facility by Pakistan Steel Mills (PSM). The company is keenly looking forward to setting up its plant in Pakistan.
Renault has approached ministry of Industries and Production with a complain that it has been asked to sign an undertaking to bear any hike in the cost of land that will be provided for setting up a Renault Manufacturing Plant by National industrial park development and management company (NIP).
The land provided to Renault Manufacturing Plant is 50 Acres and it costs Rs.1.3billion. The said price will be paid in three installments. But PSM’s board of directors has decided now to reassess the price of allotted land and then ask the buyers revised amount. The French company has partnered with Al-Futtaim Automotive Pakistan a Private Limited Company.
On 10 January 2017, it was decided by Economic coordination Committee that industrial park will be built on the land of PSM. And also, it was decided that Rs.7million per acres will be the price of land.
Ministry of industries is not satisfied with the take of PSM to reassess the price of land which was already negotiated and agreed upon. The ministry will seek the involvement of cabinet to resolve the issue.