Chandigarh Automobile giant Maruti Suzuki India Ltd (MSIL) will be allotted about 900 acres at Industrial Model Township (IMT) Kharkhauda in Sonepat for setting up car and motorcycle manufacturing units. The allotment, officials said, will entail an investment of 18,000 crore, one of the biggest in recent times. Officials said the 900 acres being allotted to the auto giant will fetch ₹2,500-2,700 crore for the state exchequer.
A decision to this effect was taken during a meeting of the Haryana Enterprise Promotion Board (HEPB) headed by Chief minister ML Khattar in Gurugram on Saturday. MSIL chairman RC Bhargava and top functionaries were also present during the meeting. The country’s largest car manufacturer plans to gradually shift its manufacturing operations from the Gurugram facility to IMT Kharkhauda once the new unit get commissioned. The relocation has been necessitated due to growing congestion and traffic snarls in Gurugram. Officials said the car manufacturing unit will come on 800 acres and the Suzuki motorcycle unit will be set up on 100 acres at IMT Kharkhauda.
The finalisation of expansion and relocation plans at IMT Kharkhauda, officials said, were delayed due to issues pertaining to reimbursement of State Goods and Services Tax (SGST) and the newly enacted law providing for 75% reservation for locals in private sector jobs. “We have been able to iron out these issues and a broad agreement has been reached on the incentives to be provided to the company. The minutes are being prepared and will be shared with MSIL,’’ said an official.
Chief minister Khattar in a statement said the ongoing talks with Maruti to set up a plant on about 900 acres at Kharkhauda were finalised. “This has been discussed in detail with the senior management of the company. If the company deposits the entire amount within 45 days, then it will be given 10% discount on the total amount as per the policy. Along with this, the company has been given State Goods and Services Tax (SGST) reimbursement for 15 years by the government,’’ he said.
{{/usCountry}}Chief minister Khattar in a statement said the ongoing talks with Maruti to set up a plant on about 900 acres at Kharkhauda were finalised. “This has been discussed in detail with the senior management of the company. If the company deposits the entire amount within 45 days, then it will be given 10% discount on the total amount as per the policy. Along with this, the company has been given State Goods and Services Tax (SGST) reimbursement for 15 years by the government,’’ he said.
{{/usCountry}}The auto major had earlier expressed concern over the enactment of the 75% private sector jobs quota law terming it as a deterrent in finalising expansion plans. “Even though we have got assurances that the criteria for applicability for the Haryana State Employment of Local Candidates Act shall be pragmatic and business friendly, the same needs to be formalised. A meeting at the highest level from both sides is necessary to close this critical issue,’’ the company had written to the state government a few months back.
In a measure to placate the industry, the state government had last week reduced the upper limit of gross monthly salary for jobs which will come under the ambit of the private sector jobs quota law. As per a notification, jobs having a gross monthly salary of not more than ₹30,000 will be up for hiring from amongst local candidates. The company brass subsequently expressed satisfaction over the reduction in the upper limit.
The state government also plans to exempt firms and establishments which come into being after the commencement of the law on January 15, 2022 from hiring 75% local candidates for a year. Also, any hiring from within (internal hiring) by a company or an establishment will be exempted.