Project to be set up at Chakan.

Shri Vilasrao Deshmukh, Chief Minister of Maharashtra and Shri Rahul Bajaj, Chairman, Bajaj Auto Ltd were present, when the MoU was signed by Shri V. K. Jairath, Secretary (Industries) on behalf of the Government of Maharashtra and Shri Sanjiv Bajaj, Executive Director on behalf of Bajaj Auto Ltd.

Speaking at the function, Shri Rahul Bajaj stated, “Three wheelers and light four wheelers occupy an important and growing segment of the automobile industry, in India and many foreign markets. Our R&D is developing new products for this segment and we propose to build a new state-of-the-art plant at Chakan to productionise this new range of products”.

Shri Rahul Bajaj, later speaking on the occasion pointed out that, “Bajaj Auto Ltd has always had a cherished history with the State for several decades and this State has been its home all the time. The State Governments proactive support and the encouraging investment climate were major factors in the decision to set up this Greenfield facility at Chakan.” He mentioned that the products which are to be manufactured at this new plant coming up at Chakan will meet the needs of the market in providing environment-friendly, technologically advanced and economical means of goods and passenger transport in the country. The products are also expected to add significantly to the already growing exports of the company.

Shri Vilasrao Deshmukh expressed his happiness that Bajaj Auto has once again chosen Maharashtra for its new project. He acknowledged the contribution made by the Bajaj Group to the development of the State and was confident that the new project of Bajaj Auto at Chakan would generate significant employment and ancillary development opportunities. He added that Maharashtra has been able to attract substantial investments, especially in the manufacturing sector. The Pune belt has now become a preferred destination for automobile and automobile component manufacturers.

Shri Vilasrao Deshmukh highlighted that this MoU was one more example of the pro-active steps taken by the Government of Maharashtra for attracting investments into the State through new ventures and projects, thereby generating direct/indirect employment opportunities and creating opportunities for many ancillary industries in and around the Pune Region.

Under the MoU, Bajaj Auto would be acquiring 250 acres of land at Chakan for setting up the plant. Bajaj Auto along with captive process vendors will invest Rs. 1750 crores. An additional investment of Rs. 250 crores by vendors, in the existing facilities is envisaged, for supplying components to the new Plant requirement. The investment of Bajaj Auto will be entirely funded by internal accruals. Bajaj Auto’s new plant would be providing direct employment for about 1000 persons. The commercial production at this plant is expected to commence by early 2009. The plant is being set up with a capacity to manufacture 500,000 vehicles per annum.

The project will be the fifth plant of Bajaj Auto. Bajaj Auto already has three plants in Pune, Aurangabad and Chakan in the State of Maharashtra and is currently in the process of establishing its fourth plant at Pantnagar in the State of Uttaranchal.

Shri Ashok Chavan, Minister for Industries, from the Government of Maharashtra speaking on the occasion said that with a series of dynamic and proactive steps, the State of Maharashtra was re-establishing its premier position in the industrial development in the country. The investment climate has become highly positive in the State and the major industrial houses of the country have their presence in the State with sizable investments. The State is clearly emerging once again as the most sought after State as far as fresh private investments are concerned, especially in the automobile and automobile component industry, he added.

With many initiatives having already been implemented by the State and with many more under implementation, he said that the State envisages a manifold increase in the investments in the coming years.