Bajaj Auto proposes to set up its third plant to manufacture two new models of scooters near Pune at a cost of Rs 400 crore. Italian firm Cagiva is designing one of the new models jointly with the Indian two-wheeler giant.
The new models will be equipped with four-stroke engines to adhere to pollution control norms. Chairman and managing director Rahul Bajaj said: "One of them will be designed by us and will have manual transmission. The other model will be jointly designed by Bajaj Auto and Cagiva, an Italian company, which is also engaged in the manufacture of two-wheelers." The second model will have variomatic transmission and a 150cc engine.
The company is in talks with the Maharashtra government for allotment of land in either Chakan or Ranjangaon near Pune. Bajaj said the company was looking for 150-200 acres for setting up the plant. Although Bajaj Auto has 1,000 acres at one of its units, of which 600 acres is left unused, it will not utilise the space as it wants the new plant to be near Pune. "Production at the new plant will begin 12 months from the day the land is acquired," said Bajaj. Initially, Bajaj will produce scooters of the new models on a trial basis. The ultimate capacity for all three plants will be 1 million units each per year. "This will come about in the year 2005," he added.
Bajaj has shelved its plans to enter manufacture of four-wheelers. Talking to newspersons at the Confederation of Indian Industry summit in Calcutta on Saturday, he said he had no intention of setting up a manufacturing unit in West Bengal.
Acknowledging that the state government had requested him to take over the ailing West Bengal Scooters, Bajaj said many other states too had asked him to set up plants for manufacture of scooters.
Bajaj spoke out against West Bengal's opposition to privatisation of the public sector. "Those who oppose this are selfish and are thinking of a few thousand votes and are not taking into consideration the interests of the country," he said.
