The Hindu Business Line : Mahindra auto plant likely near Chennai

According to reliable sources, the Government, which has over 255 acres for a proposed automobile park at Cheyyar, is to earmark the land for the Mahindra’s automobile project that is planned on 550 acres. The balance land is also being acquired.

The company spokesperson, however, declined to comment about the project.

According to the source, the Mahindra Group is planning to set up an automobile project and possibly a tractor facility, which it had announced earlier. The Government is planning to acquire over 2,400 acres at Cheyyar, for the various investments in the pipeline, and the additional land available for the Mahindra Group’s facility will soon be made available.

In pact

The Mahindra Group had earlier planned to co-locate its utility vehicle and tractor production facility as a part of a joint venture with Renault-Nissan at Oragadam near Chennai. In February 2007 the three partners entered into an MoU with the State Government for a Rs 4,000-crore integrated automobile production facility with a capacity to produce four lakh units a year and 50,000 tractors.

Subsequently, in 2008 the Mahindra Group exited the joint venture and decided to go it on its own. It had said that its commitment to set up a facility in Chennai stands, including the Rs 500-crore Mahindra Research Valley project, which is coming up within its SEZ at Mahindra World City. The Renault-Nissan plant is set to commence production later this year, according to sources.

Among the possibilities for the new location, Mahindra Group representatives had said, were production facilities for the Scorpio-substitute, utility vehicle and LTV (low tonnage vehicle).

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