The State Cabinet on Monday approved the fifth major automotive tyre facility project by clearing the proposal of J.K. Tyres to establish a plant in Sriperumbudur near here.
After May 2006, the government had given nod for five projects, estimated to cost totally Rs. 8,900 crore. The cost of the latest project is Rs. 1,500 crore.
On completion of the project in five years, the plant will have the capacity to produce seven lakh truck radial tyres per year and 50 lakh car radial tyres annually.
According to a senior official in the State Industries department, the company is acquiring private lands. M. Karunanidhi, Chief Minister, chaired the meeting, which lasted about 40 minutes.
The other four projects approved by the government were Michelin Tyres in Thervoy Kandigai near Chennai (Rs. 4,000 crore), Apollo Tyres in Oragadam, also near the city (Rs. 2,100 crore), ATC Tyres in Gangaikondan, Tirunelveli district (Rs. 400 crore) and MRF in Perambalur (Rs. 900 crore).
The Cabinet was said to have cleared the value of land given to the Vellore Institute of Technology (VIT) University.