Govt to finalise Maruti land deal by October-end

  • | Wednesday | 17th October, 2018

The government and the automobile major are currently deciding on the total land to be allotted and other modalities of the deal. Gurgaon: The state government is likely to finalise a deal to give land in IMT Sohna to Maruti by the end of October to set up its facility, according to sources. If the deal for 1,300 acres is finalised, the state government will earn Rs 3,445 crore. The demarcation of 700 acres from the total 1300 acres in IMT Sohna and finding clients for the remaining land would be difficult, said sources. Earlier, Maruti asked for 700 acres of land but the government is trying to sell 1,300 acres to the company in order to prevent complexities in the future.

Gurgaon: The state government is likely to finalise a deal to give land in IMT Sohna to Maruti by the end of October to set up its facility, according to sources. The government and the automobile major are currently deciding on the total land to be allotted and other modalities of the deal. The carmaker has its first facility spread over 300 acres in Gurgaon and a 600-acre Manesar factory that was set up in 2007.“A total of 1,300 acres of land is available in IMT Sohna. We want to allot this land to a single player. However, Maruti has asked for only 700 acres of land. The deal is likely to be finalised by the end of this month,” said Rajesh Khullar, the principal secretary to the chief minister.Maruti is planning to shift its Gurgaon plant and expand operations on the land. The Gurgaon plant spans 300 acres and traffic congestion on the stretch due to movement of heavy vehicles around the plant has been a cause of concern for the Gurgaon administration. The talks on the deal have been going on for the past couple of months. Earlier, Maruti asked for 700 acres of land but the government is trying to sell 1,300 acres to the company in order to prevent complexities in the future. The demarcation of 700 acres from the total 1300 acres in IMT Sohna and finding clients for the remaining land would be difficult, said sources. They added that even though the government was hoping that Maruti would take the entire land, it would go ahead with the deal if the company insisted on purchasing 700 acres.According to sources, the government is willing to accommodate Maruti’s request as it is a major investor and employment generator in the state. IMT Sohna is spread across 1,500 acres and as of now, not even a single industry is functioning out of this industrial estate. The government had planned to develop the land through the public-private-partnership (PPP) model but with the deal with Maruti set to be finalised, there will be a change of plans.TOI had earlier reported that Maruti was ready to shell out up to Rs 2.65 crore per acre. If the deal for 1,300 acres is finalised, the state government will earn Rs 3,445 crore. However, Maruti officials denied to comment on the development.

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