Zaheerabad (Telangana), April 22:
Automotive major Mahindra & Mahindra has expanded its automotive manufacturing plant here by opening an extended facility on Wednesday.
Set up with an investment of Rs.250 crore, the extended facility will manufacture a new small commercial vehicle scheduled to be launched in the first half of the current fiscal.
Telangana Chief Minister K. Chandrashekar Rao inaugurated the new facility, which will have a production capacity of 92,000 vehicles per annum.
This will be in addition to the existing production capacity of 75,000 vehicles at the plant, company officials said.
Pawan Goenka, executive director of Mahindra & Mahindra, said the automotive and tractor plant last year manufactured 90,000 vehicles and tractors.
“The new facility will double the capacity to 2.5 lakh vehicles and tractors,” he said.
Goenka said the new facility would manufacture sub-one tonne commercial vehicles which include four-wheel load and passenger vehicles in addition to the utility vehicles, light commercial vehicles and three wheelers, which are being currently manufactured.
The plant in this town of Medak district, about 100 km from Hyderabad, also has a tractor plant, which produces 3,500 tractors per month.
Goenka said the company has so far invested Rs.1,100 crore in the tractor and auto plants, providing employment to 3,500 people.
He said 25 suppliers have set up plants at a nearby ancillary park, bringing investment of Rs.1,000 crore.
He recalled that Mahindra automotive plant begun its journey 20 years ago by acquiring Allwyn Nissan. Spread over 340 acres, it was then producing 2,000 vehicles.
Inviting Mahindra to further expand the plant, the chief minister announced reducing Value Added Tax (VAT) on inputs for the company from 14 percent to five percent.
Rao also wanted the company to provide jobs to local people. (IANS)