Will ensure Maruti gets land for expansion in Haryana: Minister

GURUGRAM: The Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) is looking to strike a land deal with Maruti Suzuki India Limited and expects to mop up around Rs 3,445 crore from the sale of 1,300 acres in IMT-Sohna that would help the debt-ridden corporation.
Sources claimed the automobile giant is considering relocating its first plant, which is on a 300-acre area, from Sector 18 (Gurugram) to another site due to congestion and traffic hassles.Representatives of the company had met Haryana government officials earlier this month to find a new site, preferably near Manesar where its second plant is located with an established vendor base. Maruti officials declined to comment on the matter.
State industry minister Vipul Goel, told TOI, “They are looking for an expansion. We are in talks, but everything is at a very preliminary stage. We are still going through the details and will see if their (Maruti’s) offer fits our rules.”
An official said, “Maruti is looking for land in a location where it can shift their facility without disrupting the manufacturing activities much. It seems to be interested in purchasing the land in IMT-Sohna at a rate of Rs 2.65 crore per acre.”
Sources in the know of the matter, however, claimed senior officials in the government were divided on the land deal, which was delaying the government’s decision on the matter. However, Goel sought to allay speculation that Maruti was planning to shift its unit out of Gurugram. The auto company is only looking for an expansion, the minister said. “If they are looking for expansion, we will ensure that they get land within the state,” he maintained.
Those opposing the deal said the land, if sold through auction, would fetch much more than Rs 3,445 crore. However, officials in favour of the deal claimed that if realized, the deal would accelerate development of IMT-Sohna, which is yet to get its first industry. “We have around 1,500 acres in IMT-Sohna. And if Maruti takes up 1,300 acres, ancillary units will follow suit and it would not be difficult to sell the remaining land there,” said a senior HSIIDC official.
Further, the officials argued that apart from bailing out the debt-ridden industrial corporation, the deal would also help generate employment for those living in Sohna and surrounding areas of Mewat. Regarding the land price, they said Maruti would bring in more than money to the region. Currently, the Gurugram plant rolls out many of the company’s popular models — namely Alto and WagonR.
But, the automobile giant now finds its plant in the middle of a bustling city, which has seen a rapid growth over the past decades, making it difficult for trucks carrying raw materials and finished products to move in and out of the plant. Maruti chairman RC Bhargava recently cited the same reasons to say that a shift from the existing plant at Gurugram was “inevitable”.