Mahindra & Mahindra plans to set up a special economic zone in Maharashtra in association with the state government's investment arm, Maharashtra Industrial Development Corporation. The SEZ, the auto major's third such project in the country and first in the state, will come up at Karla near Lonavala.
Sources at Mantralaya, the headquarters of the state government, said Mahindra-Gesco Developers, the real estate arm of the M&M group, would develop the SEZ. Without disclosing the exact size of the SEZ, they said it would be built on "few thousand acres of land."
Sources added that the SEZ would not be any industry specific.
Arun Nanda, vice-chairman, Mahindra-Gesco Developers, confirmed the development but refused to divulge details.
Industry sources said both the company and the state administration were keeping the details under wraps and state Chief Minister Vilasrao Deshmukh might announce it on Friday.
India Inc seems to be in a rush to set up SEZs across the country.
The Centre had last week cleared investment of Rs 100,000 crore (Rs 100 billion) for setting up SEZs, having a total area of 40,000 hectares. The SEZs have the potential to generate 500,000 jobs.
Reliance Infrastructure, Bajaj Auto, Bharat Forge, Biocon, Satyam Computer, DLF Universal, Jubilant Organosys and Adani group are some of the major companies coming up with SEZs.
The M&M group has already completed a SEZ in Chennai and is currently developing another in Jaipur.
The Chennai SEZ is spread over 1,400 acres built in partnership with Tamil Nadu Industrial Development Corporation.
The group is currently developing the SEZ at Jaipur spread over 3,000 acres. The initial phase of the project (600 acres) will be completed by May. Once fully completed, the SEZ is expected to attract investments to the tune of Rs 1,100 crore (Rs 11 billion) and provide employment for 250,000 people.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group