Board may approve potential investment of up to Rs18,000 crore.
Gujarat is likely to get a wonderful gift from the country’s largest automobile company, Maruti Suzuki India Limited, just a couple of days into Vikram Samvat 2068. The board meeting of the auto giant is scheduled on Saturday, in which the company would announce its second quarter results. The Maruti board is also likely to approve the Gujarat plans of the company.
The company had earlier said that it would invest around Rs18,000 crore, including `6,000 crore from ancillary units, for expansion. Representatives from Maruti as well as parent company Suzuki have already met chief minister Narendra Modi.
Maruti Suzuki has been facing production issues because of labour union trouble at its Manesar plant since June this year. The company has suffered a production loss of at least 50,000 units and a revenue loss of approximately Rs1,750 crore on account of labour issues.
According to industry sources, the company is seriously looking for an alternate location for its next round of expansion. Gujarat, with the infrastructure it offers and friendly policies of the government, is the hot favourite for being selected by Maruti for its proposed plant. Last month, a team from Maruti Suzuki, led by Suzuki Motor Corporation chairman Osamu Suzuki, Maruti Suzuki chairman RC Bhargava, and MD Shinzo Nakanishi met chief minister and state government
officials.
The automobile story of Gujarat started with Tata Motors, followed by Ford and Peugeot. And if Maruti Suzuki comes to Gujarat, there are possibilities of the company setting up a plant at Bahucharaji near Mehsana. Though, company officials have said recently that Gujarat was yet to be finalised as the location for the plant, the state government is confident that Maruti Suzuki would announce Gujarat as its next base soon.
Maruti Suzuki chairman RC Bhargava had said during his visit to Gandhinagar that the company would invest Rs6,000 in the first phase to set up a plant having capacity to produce 10 lakh cars per year. A similar amount would be invested in the second phase for adding further capacity of 10 lakh cars per year, while a further Rs6,000 crore would be invested in the third phase for the vendors’ park.
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