Andhra in fray for Logan facility

Mahindra & Mahindra to decide on the venue in one month

Alan E Durante, executive director and president (automotive sector) of Mahindra & Mahindra Limited (M&M), who met chief minister Y S Rajasekhara Reddy here on Thursday, said the location for the proposed joint venture manufacturing facility for Renault's Logan car will be decided in a month's time.

Besides Andhra Pradesh, the group has also shortlisted Nasik and Haridwar, he told the media after his meeting with Reddy. The company has a tractor unit at Zahirabad.

The state industry department has taken the initiative to persuade the company to set up its proposed Rs 700-crore plant in Andhra Pradesh as soon as the announcement on the 51:49 joint venture partnership by M&M with the French car major Renault was out.

Prior to meeting the chief minister, the delegation led by Alan Durante held discussions with state industries minister B Satyanarayana and principal secretary K V Rao on the incentives and the support offered by the government to the proposed plant.

On whether the company will choose Andhra Pradesh for its new venture, Durante said, " We have given our wishlist to the Andhra Pradesh government. Besides, we have to weigh the advantages which each of these three locations offer in terms of tax benefits and other facilities. I hope we will receive satisfactory replies to all our queries from the government."

The chief minister has assured his support and asked us to decide quickly in favour of the state, he added.

When asked about the advantages other locations offer, Durante pointed out the excise and sales tax exemption being offered in Haridwar. He, however, did not elaborate on the wishlist.

"Our government is considering the proposals put forward by the company positively. We hope to arrive at a favourable outcome in the next one month," B Satyanarayana told the media.