Bajaj Auto to close down Akurdi plant from Sep 1

Pune, Aug 30 (UNI) Two-wheeler major Bajaj Auto has said it will close its 200 acre plant at Akurdi here from September 1, blaming the state government's policies on capacity rationalisation and ''resultant regional tax distortions''.

Bajaj Auto Managing Director Rajeev Bajaj yesterday said the company has no choice but to close the Akurdi Plant.

''The continuing evil of Octroi in the state of Maharashtra and the tax structure'', is the reason behind the closure, he said.

Bajaj Auto had sprung a surprise last week after announcing a four-day week to offset the slump in the two-wheeler market. Bajaj Auto has already set up plants in Pant Nagar, Uttarakhand and Chakan near Pune.

The Akurdi plant has 2,730 workers, who are largely affiliated to the main Union -- the Bharatiya Kamgar Sena. The Union will hold a meeting next Thursday to decide further course of action. They have demanded the reinstatement of the five-day week.

Bajaj management has said the wage settlement with workers had technically completed its tenure on February 28, 2007, and they have been discussing a new settlement with the union. As of now, the management has ruled out VRS.

UNI