Chandigarh: The Carmaker giant, Maruti Suzuki, plans to execute country’s largest single-location automobile investment of up to Rs 18,000 crore for a new factory in Haryana to make a peak million units annually, the company’s chairman R C Bhargava told media.
The greenfield location — which may be spread over 700-1,000 acres — would replace the company’s first ever factory located in Gurugram. The company has decided to shift its Gurugram plant, spread over 300 acres, because of space constraints. Since the premises falls around residential areas, the locals face lot of hardships due to the movement of trucks.
“We have a plan to invest Rs 17,000-18,000 crore. The total capacity that we are planning is between 7.5 lakh and 10 lakh cars per annum. This is the scale that we are looking at.” Bhargava said the company “would like to shift quickly” to the new location, but pointed to a series of issues.
The coronavirus pandemic had delayed plans for the new factory. “It went in cold storage due to Covid last year. Now again, it’s being reviewed. But we have an additional issue to sort out. Haryana’s local job reservation policy, which we are looking into,” the Bhargava said. “We are concerned about it. We are talking to them, (and) asking the state government to work out a solution, which can make everyone happy.”
The Confederation of Indian Industry (CII), in March 2020, asked Haryana to reconsider the policy that came into force legally last year, mandating 75 per cent reservation for local people in private sector jobs, where the salary is less than Rs 50,000 a month.
However, the issue had already been raised by top industry chambers, including CII. “This (75% reservation for the locals) is not a step which will promote investments or competitiveness. The entire industry feels this way, and has spoken about it. Discussions are on with the state government.”
This rule is applicable for 10 years and aims to address rising unemployment in the state.