'H'yana will consider softening blow to MSI if co gets one'

I will not like to give any burden on the industry, says Haryana Industries Min Randeep Singh Surjewala

Haryana government today said it will consider steps to soften blow to Maruti Suzuki India if court decides to increase compensation to farmers for land acquisition for the car maker's Manesar plant.

"Whenever the court decides we will see and take a call on how to soften the blow. I would not like to give any burden on the industry," Haryana Industries Minister Randeep Singh Surjewala told PTI here.

He was responding to a query on what steps has the state government taken after the company reportedly threatened to shut the Manesar plant, spread over 600 acres, following demand of over Rs 500 crore as additional compensation to landowners.

Surjewala, who was here to address Congress grassroot workers on implementation of Food Security Bill, said the state government was confident that the company would continue to function in Haryana.

"Maruti never said they will move out of Haryana. They (MSI) are still investing in the state," he said.

In 2011, Punjab and Haryana High Court had ruled in favour of higher compensation to landowners but it was challenged by Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) in the Supreme Court. The company had also filed an impleading application.

Recently, the apex court had set aside the judgement and remitted the case back to the high court for fresh determination of compensation to the landowners.

On the issue of land acquisition, he said: "It is in any case challenging for the government. We have sympathy with the industry but at the same time farmers should also get a good price for their land. So there should be a balance."

MSI is supposed to start operations of its third line at the Manesar plant in September this year. With that the company's total production capacity, including that of the Gurgaon plant, will go up which will go up to 17.5 lakh units from the current total installed annual capacity of about 15 lakh units.