The company is believed to have stated that this will be a key factor in finalising the Zaheerabad site for "Project Scorpio", the new-generation multi-utility vehicle scheduled to make its debut in the third quarter of 2001. M&M has argued that a speedy link will attract big names from the world auto business if they are assured of a city base in the country.

This, in turn, will help in a smooth transition for the families of these expatriates as basic needs like housing and education will be better catered to in a metro. A fast train service between these two centres will involve travel time of barely two hours which is reasonable.

M&M, it may be recalled, is also looking at housing its project in Nashik and is in talks with the Maharashtra government on a range of possible incentives.Interestingly, the state is also considering the proposal of a fast rail-link from Bombay to Nashik for the same reasons cited for Zaheerabad.

The two states have, otherwise, offered a range of concessions to M&M, which include sales-tax exemption for 16 years and octroi. Company executive director Alan Durante told The Financial Express: "We are evaluating both the proposals and will take a decision in a month." The time factor in making the choice is important as it would take more than a year to have a complete press line for the plant.

Experts believe it would make more sense for M&M to move to Nashik as it is familiar with the state and labour. However, a factor that would also be need to be considered is the state's willingness to roll back the octroi level to 2 per cent from the current 4 per cent.

Andhra Pradesh, as is all too familiar now, has been going all out to woo investors. M&M already has an operation in Zaheerabad to manufacture its light commercial vehicles and also the recentlyintroduced Voyager. The company would require around 400 acres for "Project Scorpio" and would only need to append more land to the existing site.

If Andhra does pull it off, experts say it would do wonders to Hyderabad, especially in the real estate business. Infocity is only the beginning and with big names like Microsoft also planning to open shop here, it is only a matter of time before it becomes an important hub of India. "The Hyderabad of today is akin to Bangalore in 1991," industry sources say which would mean that property rates will shoot through the roof in the next few years.

M&M has earmarked an investment of Rs 800 crore for "Project Scorpio" and is working towards introducing a product that would be on a par with the best in the world like the Toyota Kijang and Mitsubishi Pajero with an added advantage of being competitively priced. The company had, at one point, considered the PAL-Peugeot facility in Kalyan, northeast Mumbai, for the project but decided to drop the plan and go in for agreenfield site instead.