Maruti Suzuki plans Rs 18,000 cr investment for new Haryana plant: Report

Company chairman says state's policy reserving jobs in private companies is an 'issue to be sorted out'.

Carmaker Maruti Suzuki plans to invest up to Rs 18,000 crore for a new factory in Haryana to make a peak million units annually, R C Bhargava, the company’s chairman, has told 'Times of India', adding the company had "sort out" concerns about the state’s policy to reserve jobs in the private sector.

The proposed unit may be spread over 700-1,000 acres and would replace the company’s first factory in Gurugram. The coronavirus pandemic had delayed plans for the new factory.

“We have a plan to invest Rs 17,000-18,000 crore. The total capacity that we are planning is between 7.5 lakh and 10 lakh cars per annum. This is the scale that we are looking at,” Bhargava said, adding the company “would like to shift quickly” to the new location.

Bhargava told Times Haryana’s policy—announced last year—to reserve 75 per cent jobs was "an additional issue to sort out". "We are concerned about it. We are talking to them, (and) asking the state government to work out a solution, which can make everyone happy."

The Confederation of Indian Industry (CII), in March 2020, asked Haryana to reconsider the policy that came into force legally last year.

The assembly passed the Haryana State Employment of Local Candidates Bill in 2019, mandating 75 per cent reservation for local people in private sector jobs, where the salary is less than Rs 50,000 a month.

This rule is applicable for 10 years and aims to address rising unemployment in the state.