Mahindra and Mahindra plans an INR40bn (US$643.5m) factory in Tamil Nadu, India.

Pawan Goenka, automobile division chief at Mahindra, said: “Our investment will be INR40bn in two stages. It will be spread across seven years. In the first phase, we will set up the test track facility. Second will be an automotive plant.”

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The Tamil Nadu government will allocate 255 acres of land in Cheyyar in the district of Kancheepuram, PTI reported.

Goenka said: “We have been promised that the land will be allocated very soon. The MoU will be signed during the global investors meet (in May this year). After land has been allotted to us, immediately we will start off with the test track facility. After that we will set up the automotive factory. But, it depends on how the auto industry grows.”

“This is a future plant. As we develop new products, those products will come from this plant. It will be for both domestic and exports”, he added.

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