The Andhra Pradesh Government has agreed to extend the deadline to achieve financial closure till March 31st 2010 for Hyderabad based MLR Motors' INR 1250 crore project.

The company had approached the state government in October 2009 for further extension of deadline for achieving financial closure stating the automobile engineering industries experienced recession over the past one year.

According to sources, MLR has not paid the land cost for 225 acre that was allotted to them at Toopran mandal in Medak district close to Hyderabad.

MLR Motors was scheduled to produce about 60000 cars per year in Phase I. The company had earlier planned to roll out two compact diesel car variants by mid-2009.