Hyderabad: The work on a Rs.35 ($875 million) billion industrial park, including a luxury bus building unit of the Britain-based Caparo group of Lord Swraj Paul, began Thursday in Andhra Pradesh's Nellore district.

Chief Minister Y.S. Rajasekhara Reddy laid the foundation stone for the mega project at Menakur village of Naidupeta mandal in Nellore district, about 150 km from Chennai.

The luxury bus manufacturing plant, in collaboration with Hyundai Motors of South Korea, will roll out 2,000 buses annually from next year. It will be one of the units to come up on 2,000-acre park.

Addressing a public meeting after laying the foundation stone, the chief minister said the project, along with several other mega ventures, would transform Nellore into a major hub.

The luxury bus building plant would be the first anchor unit of the global group, which has business interests in the manufacture of steel, automotive and general engineering products.

Angad Paul, Caparo CEO and son of Lord Swraj Paul, told reporters that the Hyundai Motor Company would provide technical support so that all government regulations concerning the supply and manufacture of luxury buses in the country were complied with.