Haryana government on Thursday has urged the country’s largest car maker Maruti Suzuki India (MSIL) to also invest in real estate businesses like housing societies, so that it can also contribute to the other industry hand-in-hand.

Speaking on the sidelines of an event, Manohar Lal Khattar, Chief Minister of Haryana, urged RC Bhargava, Chairman, MSIL, to invest in the upcoming Global City project in Gurugram on 1,008 acres, one of the biggest in the world. Khattar also Bhargava to shift the company’s headquarters (corporate office) from New Delhi to Haryana.

“I will request Maruti Suzuki to put up one or two projects there (Global City) also. Haryana and Maruti have a very long association. Whereever Maruti goes, there is an industry belt and development in that area–whether it was Gurugram or Manesar and now Kharkhoda in next few years,” Khattar said on the sidelines of MoU signing between MSIL and Haryana government for the new plant in Kharkhoda, Sonipat.

The company will invest ₹11,000 crore in the first phase (out of total ₹18,000 crore) and roll out first product in 2025.

Bhargava in his response said, “The CM has urged us about shifting of the headquarters, we will think about it and discuss how or what can be done. Nothing can happen immediately.”

Talking about the 75 per cent job reservation for the locals in Haryana based companies, Khattar said that “After many discussions with various industries and stakeholders, we have come to the conclusion that the domicile will be required for five years (from 15 years earlier) and instead of ₹50,000 monthly salary (in the first proposal), ₹30,000 monthly salary will be made applicable for locals.”

Khattar added that a total of around ₹40,000 crore is expected to be invested by various industries/ ancillaries at Kharkhoda, apart from MSIL and Suzuki Motorcycle India (SMIPL) investing around ₹20,000 crore.

MSIL and SMIPL on Thursday have handed over ₹2,400 crore to the Haryana government for the land where the new factories will come up in Kharkhoda, Sonipat.

While, MSIL presented a cheque of ₹2,131 crore to Haryana State Industrial and Infrastructure Development Corporation (HSIIDC), SMIPL, which will get a 100-acre plot at the new facility, handed over a cheque of ₹266 crore for the land allotment.

“We were born in Haryana (with the first plant in Gurugram in the early 1980s), grew in Haryana and will grow in Haryana. The Kharkhoda facility will be the single site which will manufacture a million (10 lakh) cars a year. This will probably the biggest manufacturing site in India,” Bhargava said.

Subject to market conditions, he said the company will be able to reach peak production capacity in eight years.

Currently, MSI has a cumulative production capacity of around 22 lakh units per annum across its two manufacturing plants in Haryana and parent Suzuki Motor’s facility at Gujarat. The two plants in Haryana —at Gurugram and Manesar— together roll out around 15.5 lakh units per annum and rest 7.5-lakh units per year come from Suzuki Gujarat.

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