KOLKATA: Mahabharat Motors, promoted by Indonesia's Salim group, will begin production of two-wheelers by June next year, a top company official said on Thursday.

"The construction of the factory will end by December this year. Installation of machinery will be completed by March, 2009. After test running, the first two-wheelers will start rolling from June," Prasun Mukherjee, Chief of Salim's partner Universal Success, told reporters after meeting West Bengal Chief Minister Buddhadeb Bhattacharjee along with Salim group Managing Director Beni Santoso.

Reply to a question, he said the project cost would be Rs 1,200 crore and the two-wheelers would be produced under the brand name of TVS. Initially, 7,000 would be produced per month.

"Although the two-wheelers would be produced under the TVS brand, TVS would be a contract manufacturer. The equity of Mahabharat would remain with the Salim Group and Universal Success," Mukherjee said.