Mahindra blocked up in setting Testing facility; Land allotment issue

M&M is facing land allotment problem from the Tamil Nadu government and investment has been piled up so much that it has become a cause for concern for the company. Mahindra was considering investing about Rs. 18,000 crore in setting up a test facility at Cheyyar near Chennai, but the slow government process has delayed the whole operation.

Mahindra is apparently not happy with the delay. M&M has also planned several other investments including a 4,000 crore production unit for which it is considering several places in Tamil Nadu. According to the words of Pawan Goenka, President of Automotive and Farm equipment, company should have possessed the land by now but the snail paced government process is creating problems. He also added that the government had not denied the allotment and company is expecting for some fast pace decision.

Mahindra blocked up in setting Testing facility; Land allotment issue

According to the MoU signed with the TN government in 2011, the facility should be ready in one year. the company has demanded for about 400 acres of land out of which 150 acres will be used for construction of test circuit while the remain area will be made available for the manufacturing plant. The 18,000 crore investment is planned for next 7 years beginning 2011.

Currently Mahindra is using a small course at its Mahindra World City near Chennai for testing purpose. However, this is not the permanent solution company is looking for, and for long run company need something well established and that could meet with the objectives and criteria. Company is already in the final stage of talk with the govt and decision could be revealed anytime. Earlier they were considering seven states but now they have shortlisted Maharashtra and other one is still in covers, said Goenka.

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