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The company is expected to sign a memorandum of understanding with the Maharashtra government for the purpose within fortnight or so. The power train plant will have a capacity to produce 2 lakh units per anum.

Besides using the facility for manufacturing engines and gear boxes for the Spark model, the Talegon facility will be also used for export, sources in the Maharashtra government said.

The company has already invested around Rs 1,400 crore (Rs 14 billion) in setting up the facility to manufacture the Spark model. The first car from the plant is expected to roll out from September. The car manufacturing plant has a capacity of 1.30 lakh units per anum.

"We are definitely planning to bring the power train unit at our upcoming plant in Pune. However, the schedule for the same has not been finalised," said P Balendran, vice president (corporate affairs), General Motors.