The leader in utility vehicle manufacturing in India, Mahindra & Mahindra is planning to invest close to Rs. 3000 crores to put up its new manufacturing plant in the state of Uttarakhand. This information has been revealed by the state Government of Uttarakhand. This decision has been taken after President of Mahindra & Mahindra (Automotive and Farm Equipment Sectors) Pawan Goenka had a meeting with the State Chief Minister Vijay Bahuguna on 26h April.
The state Government disclosure also revealed that Mahindra & Mahindra has sought a 500 acre land for the setting up of the plant which will be having an annual capacity of 2.5 lakh units. The discussions are still on and the Government has proposed to allot land for Mahindra & Mahindra in the area of Sitargunj. The news about the company investment plans comes after it was unhappy about Maharashtra’s recent change in VAT policy.
The Maharashtra Government has announced that in its new VAT refund policy to automakers present in the state, the VAT refund would only be provided to vehicles sold in the state and not all the vehicles produced there. This has not been taken very well by Mahindra and they have decided to stop their next phase of investments to the tune of Rs. 4000 crores at its Chakan manufacturing facility.