India’s largest car manufacturer, Maruti Suzuki India will be signing an agreement with the Gujarat Government on 2nd of Jun,e which will end the five months long period of uncertainty on the proposed project near Mehsana in north Gujarat. Maruti India expected plant will have a capacity of 2.5 lakh cars per annum, which will gradually increase looking after the demand and exports commitments. The agreement says that the Gujarat Government will be providing the company with 500 acres of land to set its first plant outside Haryana.
The initial investment of Maruti India will be of Rs. 6,000 crore to develop the facility to manufacture 20 lakhs car per annum in Gujarat. This will be the Maruti’s seventh unit where in the production will start in the coming five years. The current Maruti Facilities are located in Gurgaon, which has three units and two in Manesar excluding the one which is still being developed. Mr. Narendra Modi who has the ruling power in the state of Gujarat wants to develop the state as an auto hub by providing facilities to General Motors, Asia Motor Works and Tata Motors as well. Tata Nano which was also manufactured two years ago in Gujarat in Anand near Ahmedabad was also done after signing a state agreement.
Maruti facility will be now one of them. Maruti Suzuki India chairman Mr. RC Bhargava announced the choice of the company is Gujarat for future expansions of the manufacturing units on 31st of May, 2011. Though there were contemplations as to Maruti’s plan to expand may go slow in the near future but these contemplations were put to an end after the 2nd June agreement amongst the two parties. Gujarat Industrial Development Corporation posses the 500 acres area, which will be used for setting up an industrial estate and now after the agreement this area will be sold to Maruti for its expansion plans