The Hindu Business Line : Bajaj Auto hoping for more sops from Maharashtra

TWO-WHEELER major Bajaj Auto will take its proposed new greenfield plant for three and four-wheelers and its plans to expand motorcycle capacity to Uttaranchal or Himachal Pradesh, if the Maharashtra State Government does not extend an attractive package of incentives.

The Chairperson of Bajaj Auto, Mr Rahul Bajaj, told Business Line, "Uttaranchal and Himachal Pradesh have been calling us and they have a great package of incentives including Central excise benefit and companies such as Mahindra & Mahindra and TVS have already started some operations in these States."

He said there is no reason Bajaj should also not consider taking the new projects there.

The company will soon commence negotiations with the State Government for buying 200 acres of land at Chakan near Pune for the two new projects, with an estimated capital outlay of Rs 500 crore. Chakan is already home to the company's motorcycles plant and the company is in discussion with the Maharashtra Industrial Development Corporation for the additional land there.

"We will meet the Industries Minister, industries secretary and others for the land but they will have to offer me a package of incentives for the new project," Mr Bajaj said. He pointed out that the Executive Director, Mr Sanjiv Bajaj, and the Vice-Chairman, Mr Madhur Bajaj, would meet the authorities to take the discussions forward.

BAL has firmed up plans to rejuvenate its three-wheeler business with a new range of products and is simultaneously planning to foray into the four-wheeled low cost goods carrier business.

The company, meanwhile, will negotiate with the State Government for a variety of benefits including sales tax deference for a 15-20 year period.

Mr Bajaj said that Maharashtra, where it has manufacturing plants at Akurdi near Pune, Chakan and Waluj in Aurangabad, remains his number one choice for the new project, provided he gets the benefits that he is looking for.

"Our company does not have a single penny invested elsewhere and I would prefer having the new project also in Maharashtra, either in Chakan or Waluj," he said pointing out that the company is not averse to putting up the plant at Waluj, provided the State Government offers him the range of benefits that are available in Special Economic Zones (SEZ) to the new plants.

More Stories on : New Projects | Two/Three Wheelers | Bajaj Auto Ltd

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