Wednesday, October 19, 2011

Maruthi to Set up Plant in Gujarat - Accepts Modi's Offer

Gujarat chief minister Narendra Modi may have just landed yet another major project for Gujarat. And that too from country's largest car maker Maruti Suzuki India Limited (MSIL).

The company is all set to build an additional manufacturing facility in Gujarat. It is understood that a decision to this regard will be taken by the Maruti management in its board meeting on October 29.

Maruti has said it along with vendors, could invest up to Rs. 18,000 crore in Gujarat as it looks to produce around 2 million or 20 lakh units in the long run. MSI is looking at a phased manner of starting car production in the state.

It proposes to invest around Rs. 4,000 crore in the first phase of the plant.

For the last few months, consultations have been held between the Gujarat government and Maruti officials.

Suzuki Motor Corporation chairman Osamu Suzuki and Maruti chairman RC Bhargava met chief minister Narendra Modi last month discussing the proposed plant in the state.

The state government has offered 500 acres at Bahucharaji in North Gujarat to the company . The company has explored other states also for the last four months.

The auto maker will benefit from Gujarat's established port infrastructure to export its cars worldwide. The state already houses plants of car firms like Ford and General Motors.

Maruti's manufacturing plants in Gurgaon and Manesar, put together, have production capacity of 1.7 million vehicles.

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