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Maharashtra government may not allow Bajaj Auto to shut Akurdi plant

Maharashtra government may not allow Bajaj Auto to shut Akurdi plant
PTI
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First Published: Thu, Sep 06 2007. 08 11 PM IST
Updated: Thu, Sep 06 2007. 08 11 PM IST
Mumbai, 6 September Bajaj Auto’s decision to close production at its Akrudi plant near Pune is fast assuming a more serious nature than many expected, with the Maharashtra government today taking note of the auto major’s decision.
“At the cabinet meeting here today, the government expressed concern over the issue and it is looking into the matter. The cabinet will take a final view in consultation with Chief Minister Vilasrao Deshmukh,” Minister for Industries, Mines and Protocol Ashok Chavan said on the sidelines of a meeting here today.
The minister also said that the government will not allow Bajaj to enter into other business activity from Akrudi plant.
This development comes a day after Union Agriculture Minister meeting the representatives of workers union in Bajaj Auto.
“We will ensure that the interests of the labour at Akurdi plant would be protected,” Chavan said. The fate of nearly 2,730 workers is in danger over the closure of the Akurdi plant.
“We will not allow Bajaj to shift this plant to anywhere. Officially, Bajaj Auto management has not approached the government as yet. However, they require the government permission to shut the plant,” Chavan said.
Bajaj Auto management held taxation and government policy responsible for rendering production unviable at Akurdi plant.
“The government will not allow Bajaj to enter into other business activity from the said plant. Bajaj seems to have plans to enter into some new business like real estate development or IT sector. The land at Akurdi is very valuable,” Chavan stated.
Chavan said that Maharashtra would be the hub for the automobile industry in India.
He stated that the government has also urged the German luxury car maker BMW to start its manufacturing plant in Maharashtra.
“If BMW plans growth in India, Maharashtra will be its destination,” he said.
BMW already has a warehousing facility at Thane and a manufacturing unit in Tamil Nadu to manufacture luxury cars in India, he added.
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First Published: Thu, Sep 06 2007. 08 11 PM IST