The proposed automobile plant initiated by M&M near Cheyyar, backed by the Tamilnadu government has got the green signal, as the cabinet has approved in toto. The Rs1800-crore project will be provided with 200 acres of land (out of 450 acres) with the capacity of 1.5lakh units. The initial production will be SUVs, tractors and commercial vehicles in addition to spare parts. If situation is feasible the unit may also roll down cars too and to have an integrated operation there will be a dedicated test track.M&M will also utilise its 100 acre facility near Maraimalainagar for its R&D purpose, which too under the cover of the Tamilnadu government and the official nod for this is expected in another two months.
The MoU and the projects will provide employment for about 2500 persons. Anticipating an additional investment of about Rs5000 crore, the project seems to be a coveted initiative, which should have gone to Maharastra, where M&M has its strongholds. But ,in reality, it is the Tamilnadu government which is the beneficiary out of this projects.
The State has got a sigh of success and relief from the labor unrest for the past two months. Under the MoU, M&M would be able to deliver some 13.5 lakh units a year and amidst the global downfall, the State government’s steps would take M&M to an unenviable position in the auto sector. For M&M too this deal is a relief in the wake of its sore tie-up with Renault for the failure model Logan and the JV among Renault-Nissan-Bajaj.
As the project starts running, M&M would be the second largest tractor maker after Tafe and Deutsche-Same to feed the state’s exchequer. M&M would refine its entry into the Detroit of India, as it had to pull out from its tie-up with Ford Motors, by which a green field project was in the offing.