Indian motorcycle manufacturing brand is to invest an additional Rs 500 crore by 2021 to expand its three production facilities in Tamil Nadu under a pact with the state government to receive fiscal and monetary incentives. As per the memorandum of understanding (MoU) inked between the two parties, the Tamil Nadu government will extend fiscal and monetary incentives to the company, subject to it investing Rs 1,500 crore over a period of five years beginning May 2016, Royal Enfield, two-wheeler arm of Eicher Motors,
Royal Enfield has already invested over Rs 1,000 crore out of Rs 1,500 crore. The company is planning to put in the rest of the capital towards capacity expansion at its three existing manufacturing facilities in and around Chennai at Thiruvottiyur, Oragadam and Vallam Vadagal . The organization is also planning to invest for setting up the technology centre along the Old Mahabalipuram Road (OMR) in Chennai.
Earlier in May 2012, Royal Enfield had signed a similar MoU with the state government for setting up its new manufacturing unit at Oragadam with an investment commitment of Rs 350 crore.