Auto major Mahindra & Mahindra will invest Rs.4,000 crore over a 7-year period to double the production capacity of its facility at Chakan in Maharashtra to 7.5 lakh units annually. The company, which had earlier put on hold the expansion at the plant and considered other options citing lack of support from the Maharashtra government, said the fresh infusion would take its total investment in Chakan to Rs.8,000 crore.
A joint declaration was signed between the company and Maharashtra Government, in the presence of state Chief Minister Prithviraj Chavan. Mahindra Group Chairman Anand Mahindra said Maharashtra government’s visionary industrial policies and efficient governance practices have prompted the company to to take the decision to scale up the Chakan plant.
Tata Motors Ltd and German carmaker Volkswagen AG are among other carmakers that have agreed to invest a total of Rs.11,500 crore ($1.9 billion) to expand their manufacturing capacity in Maharashtra.
The investments would be made under the state government’s industrial project policy, which was initiated in 2005 to boost investment in the manufacturing sector. Bajaj Auto Ltd said it plans to invest Rs.2,000 crore, while Volkswagen agreed to invest Rs.1,500 crore.
No comments:
Post a Comment