In Pune, auto industry unfazed by Raj Thackeray's call

The auto sector in Pune, which houses production centres of the most prominent auto manufacturers in the country, says that 60-70 per cent of its labour is already local.

They were reponding to the Maharashtra Navnirman Sena chief Raj Thackeray's call yesterday urging companies to reserve 80 per cent of all industrial jobs created for local Maharashtrians.

The political party's agitation against North Indians, which started in February, has led to mass exodus of the labour from Bihar in the automotive belt of Pune, Nashik, Talegaon, Aurangabad and Chakan leading to production stoppages as well as delay in construction of newer plants.

Speaking to Business Standard, Bajaj Auto Chairman Rahul Bajaj said, "There is nothing new in this order (of Raj Thackeray). We have not suffered directly by this but our vendors are affected and that is why even we may have been affected. We will continue with our plans and there will be no changes in it."

Bajaj Auto is investing Rs 2,000 crore in Chakan to set up a three- and four-wheeler plant.

"I support my brother Niraj's (Bajaj) view on this (which says that preference should be given to locals but the measure should not be made mandatory)," he added.

Newer projects of automotive companies within the belt including that of Volkswagen, General Motors, Mahindra and Mahindra, Tata Motors-Fiat Auto joint venture and Daimler were hit due to a delay in construction of new plants.

A senior executive of Tata Motors said on the condition of anonymity, "Tata Motors has taken up the task of providing training to the local people to fill up the gap. The company had suffered a drop in the production last month but things had finally started to stabilise after the agitation had mellowed down recently."

Talking about the order, the official said, "We will not make any changes with our hiring pattern. Those who deserve to be in Tata Motors will be hired, on the basis of their talent and qualification."

Pune has lost about 25,000 migrant workers ever since the agitation began two months ago. The region contributes about Rs 25,000 crore worth of revenue annually.