Mahindra & Mahindra (M&M) is planning for an alternative location outside Maharashtra, to set up its proposed new manufacturing plant which was earlier planned at Chakan, near Pune in the state.
The company will invest between Rs 3,000 crore and Rs 4,000 crore. The company is planning to shift the proposed manufacturing facility as in the budget, Maharashtra Government refused to concede to automakers’ demand to withdraw an amendment under which set-offs on value-added tax (VAT) will be limited to vehicles sold within the state. In Phase I, M&M has set up the unit at Chakan with a capacity for 250,000 vehicles and 70,000 trucks per annum and was awaiting the state government’s final call on incentives for the Phase II expansion of the project.