TN to sign MoU with M & M for setting up Rs 1800 cr car plant
Tamil Nadu Government would soon sign an MoU with Mahindra and Mahindra,part of the USD 7.1 billion Mahindra Group, for setting up a Rs 1800 crore car plant in the State, Deputy Chief Minister M K Stalin said today.
He said as per the MoU, Mahindra and Mahindra would produce Sports Utility Vehicles with an initial capacity of 1.50 lakh units from the plant.However, he declined to comment on the location of the land in Tamil Nadu and the size of it.
Besides, he said, the Tamil Nadu Government was also discussing with an automobile major for setting up a car plant near Chennai with an investment of Rs 4,000 crore.
"We are in final stage of discussion with a global automobile major for setting-up a car plant near Chennai with a capacity of three lakh cars with an investments of Rs 4,000 crore", he said.
He was speaking at the inauguration of the Apollo Tyres manufacturing facility at Oragadam in which the tyre major has made investments to the tune of Rs 2,100 crore.
"A tractor plant at Nilakkottai by Sundareshwar Alloy and Steels and a Tractor component manufacturing plant at Gangaikondan with an investment of Rs 1,000 crore would also come up", he said.
With these projects, Chennai alone would have a production capacity of nearly 22 lakh vehicles per annum making it as the number one automobile manufacturing centre in the world, he claimed. According to him, the installed capacity of Chennai on producing cars, SUVs and tractors was at 17 lakh units per year.
On tyre manufacturing, he said the city also succeeded in attracting investments from companies like Michelin, JK Tyres, MRF, ATC and Apollo Tyres.
"The total installed capacity in tyre manufacturing in Chennai region is set to exceed 1,600 metric tonnes per day. This will make Chennai the largest tyre manufacturing centre in the country and in the world. Therefore, Chennai is not only the car capital of India but it is also the tyre capital of India", he said.
He said the Government was also in the process of "drafting" a sector specific policy for automobiles which will contain many new initiatives from the Government not only to attract investments but also to improve the competitiveness of the existing units.
He said the automobile testing facility, NATRIP, set up as per the Union Goverment's guidelines near Chennai with an investment of Rs 500 crore would begin operations in September this year.
