Amidst issues with the state government of Maharashtra over the VAT refunds, the country’s largest utility vehicle maker Mahindra & Mahindra threatened to pull-out recently announced investment of Rs 4,000 crore in the state. Joining the protest, the leading auto makers like Volkswagen India and Bajaj Auto have shown the similar concerns over the issues of VAT refunds.
M&M has said that the changes made by the government in rules related to VAT is impacting the annual cash flows of the firm. Speaking on the matter to TOI in the National Capital, Mr. Pawan Goenka, M&M's automotive & farm equipment president, said, "It is not a comfortable situation and we are actively considering moving out from Maharashtra as we plan the next phase of expansion."
It is to be mentioned here that Mahindra & Mahindra currently has 4 passenger vehicle plants in Maharashtra, out of its total six plants in the country. Also, M&M is the biggest investor in the field of automobiles in Maharashtra.
While further clearing the firm’s position on the matter, Mr. Goenka said, "We had taken the matter with the Maharashtra Government and they had assured us on finding a solution. However, we cannot wait for long and may take a decision on new investments over the next one month."
