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HindustanTimes Tue,02 Sep 2014

Maruti's R&D facility in Rohtak gets delayed

Hitender Rao, Hindustan Times  Chandigarh, April 10, 2013
First Published: 20:59 IST(10/4/2013) | Last Updated: 23:50 IST(10/4/2013)

Auto major Maruti Suzuki India Ltd's (MSIL) proposed state-of-the-art research and development (R&D) facility and a world-class test course at Rohtak's Industrial Model Township (IMT) is set to get delayed due to land-related issues.

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Phase-I of the project, which was envisaged to get completed by September 2012, is now expected to be ready by June 2014, as the company has been granted an extension to implement the project, Haryana officials said.

The MSIL was allotted 700 acres in 2009 by the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) for setting up R&D facilities and a world-class test course in IMT Rohtak.

A regular letter of allotment (RLA) was issued on August 13, 2009, and the possession of the plot was offered to MSIL on September 25, 2009. The company paid Rs. 525 crore as the full cost of land in October 2009.

However, out of 700 acres allotted, physical possession of only 694 acres was handed over to the company on July 19, 2010, since a canal was passing through the plot.

As per the terms of allotment, the MSIL was required to implement Phase-I of the project within three years from the date of offer of possession of the plot - till September 2012. But it failed to do so. The three-year period for implementation of Phase-I expired on September 24, 2012.

The MSIL in a communication to the HSIIDC in May 2012 said: "At the time of taking physical possession, it was noticed that a canal of the irrigation department was passing through the centre of 700-acre plot. The HSIIDC gave partial possession of 694 acres on July 19, 2010. The balance land occupied by the canal was critical for planning our facilities and this land was handed over to us on June 6, 2011. As per the terms and conditions of the agreement, the construction of our facilities is required to be completed in three years. It is requested to consider the start date as June 6, 2011 - the day physical possession of entire 700 acres as given to the company. This shall mean that Phase-I of the project should be completed by June 6, 2014," wrote MSIL executive director R Dayal.

Haryana officials said due to delay in handing over the remaining 6 acres, the company could not start the construction activities at full swing and could not implement the project in time.

"Maruti's request for extension of time was placed before the Estate Management Committee of the Corporation. The committee, taking all aspects into consideration, observed that the company's request for counting three-year period from June 6, 2011, appears to be genuine and thus decided to recommend that MSIL's three-year period for implementation of the project may be counted from June 6, 2011," officials said.

Project's current status
As per the HSIIDC field report of December 2012, the automobile manufacturer has constructed a boundary wall around the plot. The construction work for the administrative block and roads for the test track were also under progress.

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