Tata Motors said it may invest about Rs 600 crore (Rs 6 billion) to develop Futuristic Infantry Combat Vehicles (FICV) and set up a manufacturing plant for rolling out FICVs for the Indian Army.

"The development cost of FICV could be about Rs 300 crore (Rs 3 billion) and a manufacturing plant for the same could be about Rs 250 crore (Rs 2.5 billion) or above," said Ravi Pisharody, president (commercial vehicle business unit).

He, however, added the setting up of the plant would depend on the company getting orders from the government. Apart from Tata Motors, Larsen & Toubro (L&T), Mahindra Defence and OFP are in the fray to bag an order for 2,000

FICVs to the defence forces. The tender process is yet to be completed.

"The plant may be set up in Dharwad (Karnataka) if we get the order," Pisharody added. Tata Motors' revenue from the defence business is estimated to have increased by 50 per cent to Rs 1,000 crore (Rs 10 billion) in the current financial year. In the next financial year, the company is looking at a growth of 25-35 per cent.

The company, with an order book of Rs 250-300 crore (Rs 2.5-3 billion), is also looking at supplying landmine-protected vehicles to states like Maharashtra and Jharkhand. The firm is in the exploratory stage of entering the Middle East market for its defence vehicles. At present, it exports products to Sri Lanka, Nepal, African nations and the US agencies in Afghanistan.