Renault, M&M sign car plant pact with Maharashtra

French auto major Renault and Mahindra & Mahindra, which have a joint venture arrangement, today inked a memorandum of understanding (MoU) with the Maharashtra government to set up a Rs 550 crore car manufacturing plant in the Nasik industrial belt.

It will commence production activity from 2007. The 'Logan' model of cars will be manufactured from this plant. The plant would have a capacity to produce 50,000 cars a year.

Chief minister Vilasarao Deshmukh said, the state government had announced a package offering incentives for setting up industries in the Nasik-Pune-Aurangabad auto-cluster area.

"The Renault-Mahindra and Mahindra facility will also enjoy the same package announced by the state government, similar to Skoda Auto that has set up base in the Sendra Industrial area in the Arangabad region."

VK Jairath, principal secretary, Maharastra, said, "The state government has offered a customised package of incentives for the Renault-Mahindra & Mahindra mega project that will effectively result in an investment of Rs 700 crore. The incentives paid back would include both octroi exemption and refunds, electricity duty exemption and stamp duty reduction amongst other things."

He added that the last fortnight had similarly seen Siemens entering into an arrangement with the state government.

Chief minister Vilasrao Deshmukh is set to visit the USA where meetings have been scheduled with Boeing and Microsoft, a senior official said.