Bajaj Auto Inks MoU with State Government for Greenfield Project at Chakan

Bajaj Auto Ltd announced that the Government of Maharahstra and the Company on August 28, 2006 have signed a memorandum of Understanding (MoU) in connection with the Greenfield Project being set up by the Company at Chakan, Pune dist. to manufacture a new range of three wheelers and four wheelers.

Shri Vilasrao Deshmukh, Chief Minister of Maharashtra and Shri Rahul Bajaj, Chairman of the Company were present when the MoU was signed by Shri V K Jairath, Secretary, (Industries) on behalf of the Government of Maharashtra end Shri Sanjiv Bajaj, Executive Director, on behalf of the Company.

Speaking at the function, Shri Rahul Bajaj stated, "Three wheelers and light four wheelers occupy an important and growing segment of the automobiles industry, in India and many foreign markets. Our R&D is developing new products for this segment and we propose to build a new state-of-the-art plant at Chakan to productionise this new range Of products".

Shri Rahul Baja later speaking on the occasion pointed out that, "Bajaj Auto Ltd has always had a cherished history with the State for several decades and this State has been its home all the time. The State Governments proactive support and the encouraging investment climate were major factors in the decision to Set up this Greenfield facility at Chakan." He mentioned that the products which are to be manufactured at this new plant coming up at Chakan will meet the needs of the market in providing environment-friendly, technologically advanced and economical means of goods and passenger transport in the country. The products are also expected to add significantly to the already growing exports of the company.

Shri Vilasrao Deshmukh expressed his happiness that the Company has once again chosen Maharashtra for its new project. He acknowledged the contribution made by the Bajaj Group to the development of the State and was confident that the new project of the Company at Chakan would generate significant employment and ancillary development opportunities. He added that Maharashtra has been able to attract substantial investments, especially in the manufacturing sector. The Pune belt has now become a Preferred destination for automobile and automobile component manufacturers.

Shri Vilasrao Deshmukh highlighted that this MOU was one more example of the pro active steps taken by the Government of Maharashtra for attracting Investments into the State through new ventures and projects, thereby generating direct / indirect employment opportunities and creating opportunities for many ancillary industries in and around the Pune Region.

Under the MoU, the Company would be acquiring 250 acres of land at Chakan for setting up the plant. The Company along with captive process vendors will invest Rs 1750 crores. An additional investment of Rs 250 crores by vendor in the existing facilities is envisaged, for supplying components to the new Plant requirement. The investment of the Company will be entirely funded by internal accruals. The Company´s new plant would be providing direct employment for about 1000 persons. The commercial production at this plant is expected to commence by early 2009. The plant is being set up with a capacity to manufacture 500,000 vehicles per annum.

The project will be the fifth plant of the Company. The Company already has three plants in Pune, Aurangabad and Chakan in the State of Maharashtra and is currently in the process of establishing its fourth plant at Pantnagar in the State of Uttaranchal.

Source : Equity Bulls

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