After setting up manufacturing plants in West, North and South India, automobile major Mahindra & Mahindra (M&M) may set up one in North East India.
Currently, M&M has seven automobile manufacturing plants in five Indian states. It is reported that Mahindra & Mahindra could set up a manufacturing plant in Assam. If that happens, M&M will be the first automobile company in the country to manufacture vehicles in that state.
V K Pipersenia, chief secretary, government of Assam, confirmed that an M&M delegation comprising top executives met with the state government in July this year. "They have expressed interest in setting up an automobile manufacturing base in the state, as well as to invest in expanding Mahindra Holidays into Assam," Mr Pipersenia told Autocar Professional. Patanjali Yogpeeth and Dabur are, reportedly, the other companies which are set to invest in the state.
Like in other states, fiscal incentives offered by the Assam government will have a bearing on the investment decisions by Mahindra & Mahindra. Mr Pipersenia said that the state government would offer incentives to attract investments.
The investments by M&M, if they fructify, will lead to major employment gains in the state. Also, setting up a base in Assam will benefit both M&M's automobile and time-sharing holiday businesses as the state is a strong emerging market for automobiles as well as a preferred destination for domestic and foreign tourists.
Assam's Chief Minister, Sarbananda Sonowal has reportedly said that a land bank has been mooted to be set up in the state for investors, which will also include unused land of defunct public enterprises.
A response from M&M to queries regarding the investment plans was awaited at the time of publishing this report.
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