M & M In Pact For Tn Auto Park

While the exact location of the park is yet to be finalised, top government officials have indicated that it will be on a site that is south of the Ford plant at Maraimalai Nagar, a satellite town about 45 kms from the city.

A new company is being formed for the purpose with equity being brought in by Tidco, the Mahindras and a foreign company roped in by the private promoter. Tidco will invest up to 11 per cent in the infrastructure company, it is learnt.

The auto ancillary park will be housed in about 1000 -1200 acres and will cater to component suppliers of both the foreign auto manufacturers.

 

The process of land acquisition has already been initiated and the park will be ready in time for the two projects, a top official told Business Standard.

State government officials are also confident of attraction one more foreign car manufacturer - this time from Europe - to the state, although no final agreement has been signed yet.

To invest in this and other such infrastructure projects, Tidco will totally disinvest in industries that have been promoted by it earlier.

There are close to 50 units, the apex state development agency has helped set up. Approximately, market capitalisation of these investments is estimated at Rs.275 crore.

By pulling out of projects that are mature enough to stand on their own, Tidco will revert to its original role of promoter for newer greenfield projects. Besides, by disinvesting, the agency hopes to have more money for rotation.

The modalities for disinvestment and the order in which it is to be undertaken will soon be finalised by the government. After getting necessary legislative approval, the process of disinvestment will begin.