HYDERABAD, Sept 4: The Fateh Group will start producing Belarus tractors by the end of this year. The director of Fateh Group, Hero Motors limited, Maqsood Ahmed Khan, and General Manager Shahid Pervez announced this while talking to journalists at the plant’s office. They the plant begin the production of different models of the tractor by December 2005.

They said that their preparation to establish a plant, with a cost of Rs350 million, to produce 12,000 Belarus tractors annually, was in full swing.

The two officials said that they would fulfil conditions of the Engineering Development Board of the Ministry of Industries to manufacture 53 per cent parts locally and import 47 per cent parts only.

The company would sell the tractors for Rs400,000 against the market rates of Rs565,000, they said.

Around 5,000 tractors were manufactured in the country, while 500 were imported every month, against the annual demand of 50 to 60 thousand, they said.

The two officials said that they had applied to import 2,500 tractors in response to government’s announcement of importing duty-free tractors.

They added that this facility was for those who were establishing their own plants.

They said that around 10,000 duty-free tractors would be imported from Russia to provide to growers on cheap rates.

Mr Khan said that two private groups, Shahzad and Fecto, were spreading rumours in the market that Fateh Group had not signed any agreement with the Russian-based firm to import the tractors.

They showed a copy of agreement to the media representatives on the occasion.

“When we would start importing tractors the monopoly of some traders would be affected, that’s why they are creating hurdles in our way”, they said.

“Our application is under consideration with the Ministry of Industries which was submitted after government announced the facility for importers. There are only four importers who would not import more than 2,500 Belarus tractors”, they said.