New Delhi: Within days of FM Pranab Mukherjee deciding against imposition of additional tax on diesel vehicles, Hyundai has finalized plans to set up a diesel engine plant in India. The company, that currently imports diesel engines to strap on cars like i20 hatchback and the Verna sedan, is likely to invest around Rs 500 crore for the engine facility, and an announcement is expected soon. Hyundai’s plans come months after the Korean company had put on hold a decision on the diesel plant as it awaited a clarity from the government over the treatment of diesel vehicles. The company feared that a special additional tax on diesel vehicles could slow down the buoyancy in demand for them and would not justify new investments. “With the budget throwing clarity on the matter, the plans for diesel engine factory are on again and an announcement can be expected over the next month or so,” sources said. The company is looking at having a minimum capacity of 1.5 lakh units for the plant and the engine configurations being considered are 1.1-litre, 1.4-litre and 1.6-litre. This would mean that not only will the requirement of the bigger cars be met, but possibly even a popular compact like i10 can see a diesel variant. Companies like Maruti Suzuki, General Motors and Ford are already ramping up diesel cars production as the market moves sharply towards the fuel that not only offers a huge price incentive over petrol but also higher fuel efficiency. Sources said Hyundai’s diesel engine plant is likely to come up at the company’s existing factory premises near Chennai, though other options are also being looked at, including in Gujarat. Nissan to launch low-cost cars in India under Datsun New Delhi: Nissan Motor Co said on Wednesday that the new low-cost car it has planned for India will be sold under the firm’s revived Datsun branding. The company plans to launch two new cars under the Datsun brand from its Oragadam plant near Chennai by 2014 as it looks to gain a stronger foothold in the entry-level car segment which accounts for a big share of car sales in India. TNN