M&M signs MoU with Maha Govt for Project Ingenio

Mahindra & Mahindra (M&M) today announced that it had signed a memorandum of understanding (MoU) with the Maharashtra government to set up a manufacturing facility at Nashik. M&M will invest Rs 550 crore in the project
for its new multipurpose vehicle (MPV) platform Ingenio.

The plant, which is expected to commence production by 2008, will increase the capacity at the company's existing plant at Nashik to 1,50,000 vehicles per annum, generating direct employment for over 500 employees and indirect
employment to 2,500 people. This is the third big investment by an auto company, the previous two were Tata-Fiat and General Motors in the state in less than a month.

The investment is declared as a Mega Project by the Maharashtra government as it involves an investment of Rs 500 crore and provides employment to 1,000 people or more. It therefore is granted waiver from stamp duty, power purchase duty, exemption from octroi and other local taxes.

M&M will also invest another Rs 200 crore for setting up a new engine manufacturing facility that will increase the number of engines made by the company to 800 engines per day from the existing 450.

A few weeks back, Tata Motors and Fiat had signed a MoU to set up a joint venture manufacturing facility for making one lakh passenger vehicles, and 2.5 lakh engines and transmissions at Ranjangaon near Pune. Similarly,
General Motors will invest $ 300 million in setting up a greenfield facility at Talegaon, with an initial capacity of 1.40 lakh vehicles.

In addition, the M&M group will invest Rs 1,000 in the Pune SEZ, Rs 200 crore in the Thane SEZ, and Rs 400 crore in the expansion of its IT arm Tech Mahindra. In whole, the group will invest nearly Rs 2,500 crore in the next 2-3 years.

The MoU was signed today by VK Jairath, Secretary (Industries), Maharashtra government and Pawan Goenka, President- Automotive Sector, M&M, in the presence of chief minister Vilasrao Deshmukh and M&M chairman, Keshub Mahindra.

"Our earliest plant was in Mazgaon in Maharashtra. Now, some of our most advanced facilities are in this state. In keeping with this tradition, I believe our latest plant will contribute to sustain the economic and industrial momentum of the state," said Keshub Mahindra, Chairman of the
Mahindra group.

Pawan Goenka, said, "It is not only the incentives that matter while taking a decision, other factors like state of infrastructure, proximity to port, availability of skilled manpower, good vendor base and approach of the state
government also play major role when industry decides to make such huge investment."