Indian vehicle manufacturer Mahindra & Mahindra (M&M) is planning for an alternative location for its vehicle manufacturing plant, other than its original plan of Pune in Maharastra state of India.
For the new plant, the company will invest between INR30bn ($579.4m) and INR40bn ($772m).
M&M automotive and farm equipment sectors president Pawan Goenka was quoted by business-standard.com as saying that the company is deciding what is the best option for it.
"We have not announced anything yet, but we are still finalising on one or two alternatives," Goenka said.
"We were hoping something would happen in the budget, but nothing happened."
The manufacturer's move follows the decision by the Maharashtra government in its budget, in which it turned down the automakers' demand to take out an amendment under which value-added tax (VAT) would be limited to vehicles sold in the state.
During phase-I, the utility vehicle maker had built a facility in Chakan with a capacity of manufacturing 250,000 vehicles and 70,000 trucks per year, while in the second phase, the company was planning to expand capacity.
