M&M to set up passenger vehicle plant in Tamil Nadu

"Mahindra and Mahindra has confirmed investment in the state and this would take the total car manufacturing capacity in Tamil Nadu to 1.4 million units per annum from the current 1.3 million units," said M. Velmurugan, executive vice chairman, Guidance Bureau, Industries Department.

Velmurugan, who was speaking at the India-Hiroshima Prefecture Business Matching Seminar 2010 organised here by the Confederation of Indian Industry, declined to share more details about the proposed project like the quantum of investments and whether it would come under the state government's ultra mega integrated automobile projects policy.

M&M had earlier indicated that it would be setting up a tractor plant in Tamil Nadu; however, there seems to be a change in strategy.

The Tamil Nadu government had in 2007 announced attractive incentives for automobile projects investing a sum of around Rs.4,000 crore and above over a seven year period.

According to Velmurugan, the company has acquired around 400 acres near here and more land is in the process of being acquired for the project.