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Mahindra Nissan Renault
mothership to land in Chennai
Auto majors’ consortium touches
base in South India
BY OUR AUTO CORRESPONDENT
March 1, 2007: The country’s
biggest vehicle manufacturing centre
will soon come up in Chennai. The
Tamil Nadu government on Monday signed
a memorandum of understanding with the
vehicle-manufacturing consortium
comprising India’s Mahindra and
Mahindra, French major Renault and
Japanese major Nissan.
The agreement has facilitated the
establishment of an integrated
automobile project with an initial
investment of about Rs 4,000 crore at
Oragadam.
As per this, the consortium will
manufacture utility vehicles and cars
and will take up integrated automobile
manufacturing. The consortium will
have an engine plant, transmission
plant, press shop, body shop, paint
shop and assembly line.
According to sources, the facility
will have an initial capacity to
manufacture four lakh vehicles a year
and will be significantly increased
later on. This apart the project will
also manufacture 50,000 tractors a
year. A report said that about 41,000
persons would get jobs as a result of
the setting up of the plant. This will
include those provided by ancillary
units and service providers, it added.
With the consortium planning to make
an initial investment of about Rs
4,000 crore, it is expected that the
project will result in a gross value
addition of about Rs 18,000 crore a
year to the south Indian state’s GDP.
The additional investment in the State
by vendors and supporting service
providers is expected to be about Rs
10,000 crore, added a report.
The Mahindras will also set up
separate Mahindra Research Valley in
the Mahindra World City.
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