The company has signed an MoU with Maharashtra government to invest an additional Rs 1,500 crore to the already
earmarked Rs 2,500 crore in the Chakan manufacturing plant, M&M informed the Bombay Stock Exchange. A total sum of Rs 4,000 crore would be utilised towards the development and production of vehicles slated to be rolled out from the proposed Chakan greenfield plant, it added.
"M&M's new investment at the upcoming Chakan facility, besides contributing to the state's economic growth will also produce jobs for the locals in that region. This project is in keeping with this tradition of mutual growth," Mahindra Group Chairman Keshub Mahindra said.
M&M's Chakan unit will manufacture medium and heavy commercial vehicles, to be produced by joint venture firm Mahindra International and other products slated to hit both the domestic and global markets at strategic timelines, the company said.
M&M had initially planned an investment of Rs 2,500 crore at Chakan to build a capacity of 2,50,000 units. In January, M&M President (automotive sector) Pawan Goenka had said the company intends to have an overall capacity of 3,20,000 units at Chakan, and might look at setting up a greenfield plant Chennai, "in case further need arises".