India's largest auto maker Tata Motors on Tuesday said it will set up in Myanmar a heavy truck manufacturing facility with a capacity of 1,500 units per annum.

The plant is being set up following an agreement between Indian and Myanmar governments. New Delhi had offered a line of credit of $20 million (about Rs 100 crore) to the South East Asian country.

"The two governments had approached Tata Motors to set up the plant under this credit line for the assembly of Tata Heavy Trucks," a Tata Motors spokesperson said, adding after initial discussions with Myanmar officials, the company is now progressing towards implementation of the project.

He said the company is in the process of garnering a proper understanding of the project scope.

"This plant is being planned with a production capacity of 1,500 trucks per annum, but will have provision for ramping up as the demand picks up," he said. The spokesperson, however, did not specify by when the plant will be operational.

The official said there was no capital commitment from Tata Motors towards the project, and is being entirely funded by the Indian government through the line of credit.