Diversified business conglomerate, Mahindra and Mahindra, would roll out its first tractor from its Andhra Pradesh plant in the next couple of months, state’s Industries Minister, Ms J Geeta Reddy, said on Saturday.

The farm equipment unit of Mahindra and Mahindra last year announced it will open a new tractor plant in Zaheerabad, Andhra Pradesh. The company made investments of Rs 300 crore for the manufacturing facility spread across 100 acres.

The installed capacity of the plant will be 100,000 tractors which can be scaled up to meet additional demand.

“I think Mahindra has set the ball rolling. They are going to bring out large number of tractors (from Andhra Pradesh). They will be launching (their) first tractor in a couple of months,” Ms Reddy told reporters here.

“As of now, some companies are showing interest (to enter Andhra Pradesh). What we are lacking is attracting investments in automobile sector (in) which Tamil Nadu has made an early start,” said Ms Reddy, who was here to participate in a conference organised by industry bodies Assocham and MCCI.

She said after Mahindra and Mahindra, many auto ancillary units have approached the state government seeking allotment of land.

“About 40—50 ancillaries are coming. They have asked (for) about 600 acres,” she said.

“These are mega projects. We can give tailor made incentives to them...For example we gave them (Mahindra and Mahindra) 100 per cent VAT (Value Added Tax) rebate.”

Besides promoting the auto industry, she said, the government is also looking at promoting food processing and textile industries.

“We want to encourage food processing and textile sectors,” she said, adding that Andhra Pradesh is the pioneer in providing “single window clearances” for various projects.

Noting that the government had launched State Investment Promotion Board (SIPB) headed by Chief Minister, Mr Kiran Kumar Reddy, she said through this SIPB, they have recently cleared 25 projects valued at Rs 40,000 crore.

“We are very pro active. Andhra Pradesh is waiting to take off...,” she said.

(This article was published on July 21, 2012)
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