NEW DELHI Aug 28 India's Tata Motors Ltd
and German carmaker Volkswagen AG are
among carmakers that have agreed to invest a total of 115
billion rupees ($1.9 billion) to expand their manufacturing
capacity in the western state of Maharashtra.
The investments would be made under the state government's
industrial project policy, which was initiated in 2005 to boost
investment in the manufacturing sector.
Tata Motors, India's top automaker by revenue, and Mahindra
& Mahindra Ltd, the country's largest utility vehicle
maker, agreed to invest 40 billion rupees each, according to a
statement issued by the Maharashtra government on Thursday.
Bajaj Auto Ltd said it plans to invest 20 billion
rupees, while Volkswagen agreed to invest 15 billion rupees.
Mahindra's investment, expected to be made over seven years,
will increase the capacity of its plant in Chakan, located 85
miles southeast of India's financial capital Mumbai, to 4.5
million vehicles from 3.2 million.
This will take the total investment in the plant, where it
manufactures trucks and buses, to 80 billion rupees, Mahindra
said in a separate statement to the stock exchange.
($1 = 60.4950 Indian rupee)
(Reporting by Aditi Shah; Editing by David Holmes)