Maruti Suzuki in Trouble with the R&D Facility in Haryana

The Government of Haryana has ordered Maruti Suzuki, India’s largest passenger car maker, to stop all the construction work for the new Research and Development (R&D) facility in Rohtak. With a total investment of more than Rs 3,500 crore, the R&D center was earlier expected to be operational by next year. The state government asked Maruti Suzuki to stall the construction as the company started the construction process without obtaining the necessary environmental clearance. Regarding this, the government has also appealed to Delhi High Court.

Maruti spokesperson on this development of stopping the construction said, "As the matter is pending with the court, it will be inappropriate for us to comment in the matter." Moreover, according to media reports, the automaker has stopped the construction of the center. The automaker already manufactures vehicle at the production plant at Gurgaon and Manesar. The company looks to build a 600-acre vehicle testing facility in Rohtak which is even larger than Suzuki's testing track in Japan.

Further a sigh of relief comes on May 26, as the Delhi High Court directed the Haryana Government "not to initiate any criminal action" against Maruti or its board members and officials, after the submissions made by Mukul Rohatgi who appeared on the behalf of the company.

An industry expert on the condition of anonymity said, "This essentially means that even a medium-size unit being built over six acres of land needs a prior environmental clearance before commencing construction. This introduces an additional delay of at least 18 months for investments to fructify into production and has turned into a big deterrent for investors already saddled by tardy land acquisition processes and the range of other local and environmental clearances needed to start business."

Source: ET