Tech Mahindra seeks one year extension to start Mihan unit

Nagpur: Software company Tech Mahindra has sought another extension from Union commerce ministry for setting up its unit in Mihan. It has claimed that it had done significant amount of work on the unit and has promised to start it by June 15 next year.
This is the sixth extension sought by the firm since it got the letter of permission (LoP) in July 2008. The proposal will come up before the board of approval (BoA) of the ministry’s special economic zone (SEZ) wing, on June 16, for approval.
The company is setting up 1000-seat capacity information technology (IT) development centre with an initial investment of over Rs100 crore. The centre in Mihan is part of company’s initiative to spread its wings into tier-II cities. Tech Mahindra is part of the USD 15.4 billion Mahindra Group.
The company application states that software development block was 90% complete. About 70% of the work was done in past one year. Other than the office space, the block comprises arrival area, food court and amenity area for finishing work. The entire block would be ready by June end.
The parking space, health and fitness space and rest rooms were fully ready. Only 10% work remained on internal roads and street lights. However, 30% work on generator room, electric substation, UPS room etc was incomplete.
The total investment on the project was Rs107.38 crore. The land cost was Rs24.36 crore while construction cost was Rs42.15 crore. The expenditure on plant and machinery was Rs28 crore and that on other overheads was Rs12.82 crore.
Software giant Tata Consultancy Services (TCS) has already started its unit in Mihan while Infosys is in the process of setting up its facility. Tech Mahindra is not the only company which is seeking extension for starting its unit. A large number of companies have sought extension from Mihan’s developer Maharashtra Airport Development Company (MADC).