With things not working out the way planned in Mehsana district, the Gujarat Government is likely to offer nearly 207 hectares (511 acres) at Hansalpur, about 50 km from Ahmedabad, to Maruti Suzuki India Ltd for its proposed Rs 18,000 crore plant.

Maruti, scouting for nearly 1,000 acres (including 500 acres for its vendors) in Gujarat since 2011, had reportedly favoured an area near the famous Bahucharaji temple in Mehsana district. This triggered a manifold increase in prices of land there within weeks. However, the initial enthusiasm ebbed subsequently due to issues like a return of slowdown in economy and complexities involving land procurement, both private and government-owned.

According to market sources, this may have prompted both the State Government and Maruti Suzuki to look for alternatives, especially as Maruti was keen to be closer to Sanand where Tata Motors, Peugeot and Ford had been allotted land.

Reports on Friday suggested that the State Government is likely to allot 207 hectares (20,70,000 sq.m.) near Hansalpur in Ahmedabad district at a rate of Rs 643 per sq.m.). The Finance Department’s Valuation Committee has made this recommendation to the State Government.

The Gujarat Industrial Development Corporation (GIDC), the State-level industry regulator, and the State Government currently own this land.

Business Line could not contact the Finance Secretary, Mr M.M. Shrivastava, whose office said he was busy in a series of meetings, and the Industry Secretary, Mr Maheshwar Sahu, who was on leave until June 4, for confirmation.

Since 2010, Maruti has been looking for alternative sites for its future expansion plans, particularly due to labour unrest and stiff competition. In Gujarat, it already has a pre-export inspection facility at Mundra Port with a capacity of two lakh four-wheelers.

The company’s board had, in October 2011, approved land purchase in Gujarat to set up its third manufacturing facility - after Gurgaon and Manesar in Haryana.

“This purchase would be subject to final negotiations on price and all legal formalities being completed,” the company had said.

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