Auto major Mahindra and Mahindra has proposed to invest Rs 4,000 crore for setting up a large manufacturing facility in Tamil Nadu which would roll out the company's future models, a top official said today.
"Our investment will be Rs 4,000 crore in two stages. It will be spread across seven years.
"In the first phase, we will set up the test track facility. Second will be an automotive plant," Executive Director of Automobile Division, Pawan Goenka told reporters here.
The Tamil Nadu government has promised to allocate 255 acres of land in Cheyyar in Kancheepuram district for the proposed facility which would be the largest for the company in the country, outside Pune, he said.
"We have been promised that the land will be allocated very soon. The MoU will be signed during the Global Investors Meet (in May this year)", Goenka, who was here to participate in the curtain raiser for the meet, said.
"After land has been alloted to us, immediately, we will start off with the test track facility. After that we will set up the automotive factory. But, it depends on how the auto industry grows," he said.
He further said that the plant in Tamil Nadu would manufacture products that would be rolled out by the group in future.
"This is a future plant. As we develop new products, those products will come from this plant. It will be for both domestic and exports", he said.
To a query about expectations from the Budget to be presented later this month, he said, "There has to be a clear roadmap for GST (Goods and Services Tax).
"We are also expecting policies on 'Make in India' concept. It has been talked about. It is not specific to auto industry.
"If there is an impetus on 'Make in India', that will certainly help all companies that are involved", he added.