M&M to set up automobile plant in TN

Auto major Mahindra and Mahindra is all set to establish an automobile manufacturing plant with a testing facility at Cheyyar, about 100 km from here, for which it has entered into an MoU with the Tamil Nadu government.

The MoU was signed early this year to set up the plant on 400 acres at Cheyyar with an investment of Rs 1,800 crore.

The proposed plant will be the second facility after Chakan plant in Maharashtra.

Mahindra and Mahindra, Automotive and Farm Equipment sector President Pawan Goenka said they would also be setting up a testing facility on 150 acres.

"It is 400 acres land. In the first phase we will set up a proving ground -- a testing facility on 150 acres, which will require minimal investments of Rs 100-Rs 150 crore," he said.

"We have committed investments of Rs 1,800 crore spread over seven years. Right now the focus is on adding to our Chakan plant. After that we will focus on Cheyyar plant.In the second phase we will also have an automotive plant," he said.

Declining to elaborate on the products to be manufactured from Cheyyar facility, Goenka said it would be a single line plant, manufacturing one product.

"Right now our Chakan plant is on 700 acres. But this (Cheyyar plant) is not large enough plant to use multiple products. We will be able to do single line of products," he said.