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The Mahindra group is exploring opportunities to set up a Rs 4,000-crore four-wheeler plant in Tamil Nadu.
Mr Anand Mahindra, Vice-Chairman and Managing Director of the group, who met the Tamil Nadu Chief Minister, Ms J. Jayalalithaa, on Friday, said the meeting was “to discuss exploration for a new automotive investment in Chennai.”
This is the first of the meetings to evaluate the incentive package and other modalities.
Speaking to newspersons after the meeting at the Secretariat, Mr Mahindra clarified that the company is on an exploratory mode and is looking at other States as well.
“We are exploring the most welcoming areas for us in the country. We will go where there is a propitious environment,” said Mr Mahindra.
Incentive policy
Mahindra had earlier proposed to invest in Chakan, Pune. But with Maharashtra's incentive policy change (permitting VAT refund only for vehicles sold in the State), the group was forced to look at other States. (Mahindra has plants in Maharashtra at Chakan and Nashik.) Mr Mahindra said on Twitter that Maharashtra has “gone back on their incentive package.”
Mahindra plans to start construction of the new plant as soon as it acquires land. “Once we start (construction), it will take up to two-and-half years to start production,” said Mr Pawan Goenka, President, Automotive and Farm Equipment Sectors.
The investment in the new plant will be around Rs 4,000 crore. Mr Mahindra said this could probably be the largest single investment in the auto sector, “like we have done in Chakan.”
This is in addition to the investment already in place at Cheyyar, Tamil Nadu, where a Rs 1,800-crore testing facility is coming up. Originally, Mahindra had planned a tractor facility here, which has now gone to Andhra Pradesh.
Mahindra has an R&D facility at Mahindra World City, a special economic zone near Chennai.
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