MRF announced that the company as part of its expansion plan, proposes to invest Rs 45 billion in its plants at Perambalur and Arakonam in Tamil Nadu over a period of 7 years.

The Government of Tamil Nadu considered the above proposal and has decided to accord 'Ultra Mega Project Status' under the Tamil Nadu Industrial Policy, 2014.

The Memorandum of Understanding between the Government and the Company in this regard is expected to be signed shortly.

Shares of the company declined Rs 1404.75, or 3.53%, to settle at Rs 38,440. The total volume of shares traded was 1,647 at the BSE (Monday).