Mitsubishi to set up diesel engine mfg unit in Mysore

Japanese firm Mitsubishi Heavy Industries on Friday said it will set up a manufacturing plant in Mysore to manufacture small size diesel engines, in joint venture with city-based VST Tillers Tractors Ltd.

The first phase of the project, estimated to cost Rs 41.5 crore, would have a plant capacity of 30,000 units and would go on stream by May next year, A T Nahender, Director of the joint venture, MHI-VST Diesel Engines, said in a statement.

Under license from MHI, the joint venture would manufacture, sell and service diesel engines with displacements in the range of 640 cc to 1,760 cc. The advanced technology engines manufactured would be sold in India and neighbouring countries under Mitsubishi's brand name.

The JV would introduce a range of lightweight, compact size and high rpm, the statement said. "The venture will have a distinct advantage as there is buy-back potential from MHI and VST," it said.

According to the statement, the current annual demand for diesel engines (below 50 HP) in India is over five lakh units.