Hyderabad, March 24: Chief Minister N. Kiran Kumar Reddy said a car manufacturing company had evinced interest in setting up a Rs. 6,000 crore unit in the State but declined to divulge its name as he wanted it to be a secret till it finally arrived.
He told a meeting here on Wednesday to mark the ground breaking ceremony of the new tractor plant of Mahindra & Mahindra at Zaheerabad in Medak district that the car company promised to convey its decision on setting up the unit in June. “Till then, let it be a suspense”, he remarked.
He complimented Mahindra & Mahindra for locating the tractor unit in the State .
Major Industries Minister J. Geeta Reddy said the State government successfully persuaded Mahindra management to drop its plan to set up the factory at Chennai by offering attractive incentives.
‘Good market’
Pawan Goenka, president, automotive and farm equipment sectors of Mahindra & Mahindra, said AP was the second largest tractor market for the company after Maharashtra.
The tractor plant will come up at the site where the company is already engaged in production of light commercial and utility vehicles. It would be the first tractor plant of the company in southern India and the eighth in the country.
The commercial production of tractors will commence in 15 months. The investment would be Rs. 300 crore and peak output after three years would be one lakh vehicles a year.