The Hindu Business Line : Bajaj Auto to set up Rs 2,000-cr greenfield facility in Pune

Bajaj Auto Ltd is setting up a Rs 2,000-crore greenfield project to manufacture three-wheelers and light four-wheelers at Chakan, near Pune in Maharashtra, marking its foray into the light commercial vehicle (LCV) segment.

The company signed an MoU with the Maharashtra Government on Monday.

Mr V.K. Jairath, State Industries Secretary, and Mr Sanjiv Bajaj, Executive Director of Bajaj Auto, signed the MoU in the presence of the Chief Minister, Mr Vilasrao Deshmukh, and Mr Rahul Bajaj, Chairman of Bajaj Auto.

Chakan facility

Speaking to presspersons, Mr Rahul Bajaj said the Chakan facility would have a capacity to produce five-lakh vehicles annually.

It is expected to produce 1.5-lakh LCVs in the first year of operation, he said, adding that the new facility is scheduled to go on stream by 2009.

The plant, which is being set up over a 250-acre plot, will be employing about 1,000 people.

This is the sixth MoU concluded by the State Government with different companies for setting up auto-related projects, including two with Mahindra & Mahindra, one each with General Motors, Bharat Forge and MICO.

In addition, the Chakan plant will also turn out an upgraded version of its extant three-wheeler model.

Aurangabad plant

Mr Rahul Bajaj said the company, for the first time, was coming out with a prototype of a battery-run three-wheeler next month from the Aurangabad plant.

"The battery will be costing about Rs 70,000 and should be replaced once in three years," he said.

He, however, expressed his displeasure over the delay in granting of permission to the rolling out of the prototype by the State Government.