Bajaj Auto inks MoU with Maharashtra govt

New Delhi, Aug 31: Bajaj Auto Ltd today announced that the company and the Government of Maharahstra have signed a memorandum of Understanding (MoU) in connection with its Greenfield Project at Chakan, Pune, to manufacture a new range of three and four wheelers.

As per the agreement, the company will acquire 250 acres of land at Chakan for setting up the plant and along with captive process vendors will invest Rs 1,750 crore.

An additional investment of Rs 250 crore by vendor in the existing facilities is envisaged, for supplying components to the new plant requirement. The investment by the company will be entirely funded by internal accruals.

The commercial production at this plant, with a capacity to manufacture 500,000 vehicles per annum, is expected to commence by early 2009. It will provide direct employment to about 1000 persons.

''Three wheelers and light four wheelers occupy an important and growing segment of the automobiles industry in India and many foreign markets. Our R&D is developing new products for this segment and we propose to build a new plant at Chakan to manufacture these products,'' Bajaj Auto Chairman Rahul Bajaj said.

He said the state government's support and the encouraging investment climate were major factors in the decision to set up the facility at Chakan.

The products which will be manufactured at the new plant will meet the needs of the market in providing environment-friendly, technologically advanced and economical means of goods and passenger transport in the country. The products are also expected to add significantly to the already growing exports of the company, he added.

Maharashtra Chief Minister Vilasrao Deshmukh and Mr Bajaj were present when the MoU was signed by Secretary (Industries) V K Jairath on behalf of the Maharashtra government and Bajaj Auto Executive Director Sanjiv Bajaj on behalf of the Company.

Mr Deshmukh said that he was confident that the new project will generate significant employment and ancillary development opportunities.

He added that Maharashtra has been able to attract substantial investments, especially in the manufacturing sector. The Pune belt has now become a Preferred destination for automobile and automobile component manufacturers.

The project will be the fifth plant of the company. It has three plants in Pune, Aurangabad and Chakan in Maharashtra and is currently in the process of establishing its fourth plant at Pantnagar in the Uttaranchal.

UNI