The $ 16.5 billion Mahindra & Mahindra Group said that the Tamil Nadu Government yet to allocate land for its automotive plant and resting facility, which was supposed to attract investment to the tune of Rs 2,000 crore.
The fate of the project, which was initiated in 2011, was remained uncertain.
Pawan Goenka, executive director, Mahindra & Mahindra today said that the state government yet to be allocate land for the project. He refused to give any comment further on this.
Tamil Nadu Government officials were not available for comment immediately.
The delay in allocating land for the project already caused Rs 300 crore. The group which was planning to produce tractors here, went to Telegana (earlier Andhra Pradesh). The facility was inaugurated last year, got a capacity to manufacture 50,000 tractors a year.
The company is looking for 400 acres of land at Cheyyar, in Southern Tamil Nadu. to set up a testing ground in the first phase, which will spread over in around 200 acres of land and phase II, when the company takes up the automotive expansion across the Country, it will set up an automotive plant (for four wheeler).
Earlier the company said, Tamil Nadu is important for the company and it want to have a plant and testing facility here. Testing facility will be fairly large and very important for the company, since its R&D is here.
The company also said one of the major challenges for the company is it don’t have testing facility in India and need to
go to UK, Australia or Korea to get the testing done.
The automotive plant will cater to both domestic and export markets, and the location is more to do with the model, but not for domestic and export driven.
The company already invested around Rs 650 crore in the Mahindra Research Valley (MRV) on the outskirts of Chennai with about 2,500 people.