MRF Tyres plans to invest Rs 4,500 crore as part of its expansion plans at its two manufacturing plants in Tamil Nadu and will soon sign a memorandum of understanding (MoU) to this effect with the state government.

As per a BSE filing, the fresh investment will be made at the Perambalur and Arakonam facilities. The proposed investment will create tens of thousands of new jobs.

According to the BSE filing, the proposed investment will be implemented over a seven-year period. The state government has also decided to accord it the Ultra Mega Project Status under the Tamil Nadu Industrial Policy, 2014.

Under the Ultra Mega Project status, MRF will get several benefits including VAT-related fiscal incentives, soft loan for 16 years and uninterrupted power supply. MRF has eight manufacturing facilities in South India and Goa.   

Last month Mahindra and Mahindra (M&M), India’s largest SUV manufacturer, has also revealed plans to set up a new Rs 4,000 crore plant in Tamil Nadu. It is expected to sign an agreement to this effect at the global investors meet slated to be held in May 2015.