Bajaj Auto Planning for a Plant in Gujarat

The latest news of Pulsar to be upgraded before the end of this year has made us eager in getting further updates from one of the company’s major manufacturer. There is nothing that can be done as of now rather than waiting with the fingers crossed till we get further news on this issue.

The new news now is that the auto major is finding a tough time with the Govt of  Maharashtra, where its present manufacturing plant is operating. Bajaj Auto has its  plants in Aurangabad and Chakan in Maharashtra, and the other one at Pant Nagar.

The Government of Maharashtra is supposed to pay the company a huge sum of money  equalling INR 1100 crore as part of the sales tax refund which the company has not  received so far. The Govt had imposed lot of restrictions and conditions to get the  money back.

According to Indian Express, ‘The company’ soon nearing  installed capacity of around  5 million units in regards to production, and the need for a plant will be a near future  requirement. MD, Mr Rajiv Bajaj has also voiced his grievance regarding acute labour  problems in the Chakan region of Pune, and acknowledged that proactive nature of  Gujarat government to the industry’.

Mr. Rajiv Bajaj, MD of Bajaj Auto said, “We are likely to review our investments in  Maharashtra as we are finding it tough to do business here”. He added, “It is a mess  here”, regarding the heavy delays in refund of money.

“If the Maharashtra Government is going to be erratic, one has to look at other States.” “We will consider going to Gujarat.”“In May, we were told to give a bank guarantee, which we did. But still no dues have been received from the Government.”

Regarding the process that the Government had asked for the company, Mr.Bajaj said, “The state government owes us R1,100 crore and we have not got a penny. We have tried everything”.

The company also claimed that the company that it had lost INR 100 crore as interest for the amount to be refunded and a sum of money worth INR 30 crore in other income because owing to this.

Though Bajaj is the 3rd automobile company to resist Maharashtra Govt’s negligence in this issue, it is the first 2 wheeler manufacturer to come up with a move like this. This proves the fact that the Auto major is eyeing Gujarat to come up with a new plant, which would in a way assist in boosting the company’s sales.

The worst part of this story is that Bajaj Auto could have come up with better figures than it had in the first quarter of the current financial year if the Government of Maharashtra had denied to pay the sum of money on time.

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