The Government of Uttarakhand has reavealed a statement which says: “Mahindra group has proposed to establish a project worth Rs 3,000 crore”. Mr. Pawan Goenka, President of Automotive and Farm Equipment, M&M, met Mr. Vijay Bahuguna, the CM of Uttarakhand on April 26 and had a discussion about the same. M&M will need 500 acre of of land to set up the plant and initially they will invest 200 Crore for supplier unit. This plant will be a manufacturing unit with a production capacity of 2,50,000 units anually.
Mr. Bahuguna said that the government would try to provide the land to M&M at Sitargunj for the project.
M&M refused to reveal any further detail on this project. A M&M spokesperson said to ET: “Goenka met the CM of state to discuss potential future investment in the state. The discussion was preliminary and we cannot comment on the details.”
M&M has threatened that they will not go for any further investments in Maharashtra as the Maharashtra Government’s VAT Refund policy made them unhappy. M&M was supposed to invest 4,000 crore as next phase investment at their Chakan facility.
But earlier in February, Mr. Goenka said that M&M may not go ahead with the next phase investment as the state government has decided to give VAT refund only on vehicles sold in the state and not on all products made there.
News Source: Economic Times