The company is investing Rs 3,000 crore for the construction of the first factory which will produce 250,000 units annually by mid-2017.

"The vehicles manufactured at these facilities will be supplied exclusively to MSIL and support its objective of reaching annual sales of two million units in the medium term," the company said in a statement.

Besides the three car manufacturing units in the area spread over 640 acres, an integrated suppliers' park for vehicle ancillaries will also be developed.