US headquartered Caterpillar India disclosed that it has clinched a Memorandum of Understanding with Tamil Nadu Government to commence a heavy engineering equipment manufacturing plant near the city with an investment of Rs 800 crore.

Under the pact, the conglomerate would make heavy engineering equipment used in construction and mining industry.

According to sources, the company would also diversify its existing manufacturing plants at Thiruvallur and Hosur, which has been offering jobs to 2,400 people and indirect jobs to 7,500 people.

The sources further revealed that the new project in Chennai is expected to produce about 600 direct jobs and 1,900 indirect employment.