MUMBAI: India's largest utility vehicle maker plans to invest Rs 1500 crore in its Nashik and Igatpuri facility in the state of Maharashtra to prepare for the introduction of new project "U321".The investment in the Nashik plant will be towards manufacture of vehicles, while investment in Igatpuri plant will be for manufacturing and supply of engines. The project will qualify as Ultra Mega Project The U321 project which is being currently developed out of Mahindra's North American technical centre. It is a premium MPV which will take on Toyota Innova when launched in second half of FY-18.Pawan Goenka, MD of Mahindra and Mahindra said thanks to good industrial policies and efficient government practices in Maharashtra, which has led to new phase of expansion at Nashik factory."Mahindra will continue to play an integral role in the development of not only the region of Nashik but whole of Maharashtra," said GoenkaThe project will play a very important role in accelerating sales momentum for Mahindra in FY-18, with volumes under pressure due to intense competition. In a utility vehicles space which has been growing strong double digit, Mahindra has registered a low single digit growth and this is despite introduction of new launches like KUV and TUV.