State govt may not allow Bajaj Auto to shut Akurdi

BAJAJ GROUP UNDER PRESSURE

Bajaj Auto's decision to stop production at its Akurdi plant near Pune is assuming a more serious nature than many expected with the Maharashtra government today taking note of the auto major's decision.

A state Cabinet meeting today expressed concern over the issue. "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 the government would not allow Bajaj to start any other business activity at the Akurdi plant.

This development comes a day after Union Agriculture Minister Sharad Pawar met representatives of the workers' union in Bajaj Auto. Akurdi and the area where most of its workers live fall within the Baramati Lok Sabha constituency, which Pawar represents.

"We will ensure that the interests of the labour at the Akurdi plant are protected," Chavan said. The fate of nearly 2,730 workers is uncertain following the closure of the plant.

Chavan added that the state government would not allow Bajaj to shift this plant anywhere. "Officially, the Bajaj Auto management has not approached the government yet. However, it requires government permission to shut down the plant," he said. Bajaj Auto's management held taxation and government policy responsible for making production unviable at the Akurdi plant.

Business Standard's reporter adds: Reacting to the news, Rahul Bajaj, chairman, Bajaj Auto, said: "As far as the Akurdi plant goes, the government wants us to continue, even we would have liked to continue with it."

He added that a decision on the issue would be taken on September 8. "The meeting on this will be attended by Pawar, Managing Director Rajiv Bajaj, Maharashtra Labour Minister Ganesh Naik, and me. We hope to arrive at a suitable decision on the plant," he said.