No new investments in state, warns M&M
Pankaj Doval TNN
New Delhi: Utility vehicle major Mahindra & Mahindra (M&M) has threatened to pull out fresh investments to the tune of Rs 4,000 crore from Maharashtra over the issue of VAT refunds from the state government. Some of the major auto investors, like the Volkswagen group and Bajaj Auto, have also raised concern over this issue and threatened to move out new investments from the state.
M&M, headquartered in the state and one of its biggest automobile investors, said the VAT refund issue was impacting its annual cash flows after the government made changes in rules. "It is not a comfortable situation and we are actively considering moving out from Maharashtra as we plan the next phase of expansion," Pawan Goenka, M&M's automotive & farm equipment president, told TOI here.
He said the company—that currently has four of its six passenger vehicle plants in Maharashtra—is in discussion with other states to set up a greenfield, 2.5-lakh-unit capacity plant. "We had taken up the matter with the Maharashtra government and they said they are finding a solution. However, we cannot wait for long and may take a decision on new investments over the next one month," he said.
Pankaj Doval TNN
New Delhi: Utility vehicle major Mahindra & Mahindra (M&M) has threatened to pull out fresh investments to the tune of Rs 4,000 crore from Maharashtra over the issue of VAT refunds from the state government. Some of the major auto investors, like the Volkswagen group and Bajaj Auto, have also raised concern over this issue and threatened to move out new investments from the state.
M&M, headquartered in the state and one of its biggest automobile investors, said the VAT refund issue was impacting its annual cash flows after the government made changes in rules. "It is not a comfortable situation and we are actively considering moving out from Maharashtra as we plan the next phase of expansion," Pawan Goenka, M&M's automotive & farm equipment president, told TOI here.
He said the company—that currently has four of its six passenger vehicle plants in Maharashtra—is in discussion with other states to set up a greenfield, 2.5-lakh-unit capacity plant. "We had taken up the matter with the Maharashtra government and they said they are finding a solution. However, we cannot wait for long and may take a decision on new investments over the next one month," he said.
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