Financial Daily from THE HINDU group of publications
Friday, Jun 17, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 17, 2005 |
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Corporate
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Announcements M&M to produce Renault's Logan at Nashik plant Our Bureau
Mumbai , June 16 MAHINDRA & Mahindra Ltd (M&M), which has a 51:49 joint venture with French auto major Renault, announced on Thursday that it will produce Renault's `Logan,' an entry-level C segment car, at its Nashik facility. A Rs 550-crore MoU was signed in the Secretariat between the Maharashtra Government and M&M to this effect. After the Skoda plant in Aurangabad, this is the second major auto investment in Maharashtra in the last four years. Speaking to Business Line, Mr Alan Durante, Executive Director and President of Automotive Sector, M&M, said that Maharashtra offers incentives, which are competitive. Therefore, the company chose to use its existing Nashik facility for Logan cars. Whereas, a greenfield project in other States would have cost Rs 1,500 crore. " We have received concessions in octroi, electricity and duty stamp duty from the Maharashtra Government. Plus, we also have uninterrupted power in our facility. Therefore we have chosen to manufacture the cars here," Mr Durante said. By 2007, the manufacturing will start at the facility and it will produce about 50,000 cars a year. Mr V. Jairath, Industries Secretary, Maharashtra Government, said that new venture is part of the overall State strategy to develop auto clusters in the Nashik and Aurangabad regions. "The negotiations were going on between the State Government and M&M for the past two months. The company was being wooed by other States, but our tax incentives were more attractive. This project will also provide more than 2,500 jobs in the region," the Industries Secretary said.
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