The pact was signed by D J Pandian, Additional Chief Secretary in the State Industries Department, and Keita Muramutsu, president-cum-CEO of Honda Motorcycle and Scooter India (HMSI), in the presence of Chief Minister Anandi Patel in Gandhinagar.
"HMSI will invest Rs 1,100 crore to set up their plant at Vithalapur in Mandal taluka of the district, around 110 km from here, which will provide employment to more than 2,000 local youths. HMSI has planned to churn out 1.02 million two-wheelers from this facility," an official press release said.
Welcoming the move by Honda Motorcycle, Ms Patel said such plants will contribute towards Prime Minister Narendra Modi's ambitious 'Make in India' campaign.
"Gujarat is surging ahead in becoming India's 'auto hub'. Such plants in the region of Vithalapur-Sanad-Bechraji will create employment opportunities for the local youths.
"On the other side, waters have reached to that arid region through Narmada canal network, which will help locals in agriculture and cattle rearing thus, it is a three-layered development model for that region," the chief minister said during her interaction with media.
She was accompanied by Finance Minister Saurabh Patel, Health Minister Nitin Patel, Law Minister Pradeepsinh Jadeja, Agriculture Minister Babu Bokhiria and others.