Bhargava for fast call on plant location

Maruti Suzuki India plans to establish a car manufacturing plant in Gujarat with an annual capacity of 1 million units at an investment cost of about ₹35,000 crore, it announced on Wednesday. Later, MSIL Chairman RC Bhargava said the plant's location is expected to be finalised in a few months.

- DEEPAK PATEL

Earlier in the day, India's largest carmaker and the Gujarat government signed a memorandum of understanding (MoU) for the new plant at the Gandhinagar summit.

"Both sides (MSIL and Gujarat government) are appreciative of the need for expediting the decision...coming to a conclusion (regarding location). We have a target of completing the construction of this 1 million units annual capacity plant by 2028-29, so it does require a start as soon as possible. So, there is an urgency about it. Otherwise we would not have put it in the MoU....This is an urgent matter where we could not afford delays," Bhargava said in a telephonic interaction with Business Standard.

The MoU encompasses two aspects, explained key Bhargava. First, Gujarat has been designated as the "preferred state" for establishing the new plant. Second, the production capacity of the company's existing Gujarat plant is slated to undergo an expansion, increasing from 750,000 to 1 million units per year, by introducing a new production line. The expansion will be done at a cost of ₹3,200 crore and the new production line will be in operation from 2026-27.