Maruti may not open Manesar plant yet despite permission. Here's why

The Maruti Suzuki facility has been allowed to run on a single shift basis, while fixing the total number of employees at the plant at 4,696.Maruti sa
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FILE PHOTO: Cars are seen parked at Maruti Suzuki's plant at Manesar, in Haryana on August 11, 2019. (REUTERS)
FILE PHOTO: Cars are seen parked at Maruti Suzuki's plant at Manesar, in Haryana on August 11, 2019.

The Haryana government on Wednesday granted permission to Maruti Suzuki India (MSI) to restart its Manesar-based manufacturing facility, but the company said it will resume operations only when it can maintain continuous production and sell it, "which is not possible at this point of time".

The Gurugram district administration allowed the auto major to run the facility on a single shift basis, while fixing the total number of employees at plant at 4,696.

Permission is hereby granted to Maruti Suzuki India, Manesar to operate the establishment during the lockdown period, Gurugram Deputy Commissioner said in an order dated Tuesday.

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The district administration also gave permission to operate 50 vehicles.

"No other manufacturing/service activity is permitted in the unit other than those approved under the guidelines of the Ministry of Home Affairs, Govt of India during the said lockdown period, else strict action will be taken and you will be responsible for the same," the order said.

Also Read : Maruti's outreach amid Covid-19 includes water ATMs, lakhs of cooked meals

When contacted over the matter, MSI Chairman RC Bhargava told PTI, "We will start operations whenever we can maintain continuous production and sell it, which is not possible at this point of time."

MSI's Manesar (Haryana) plant is outside the limits of Gurugram Municipal Corporation, while its Gurugram plant falls within the city limits.

The two plants in Haryana have an installed capacity to roll out 15.5 lakh units per annum. Operations at the facilities are suspended since March 22.

Also Read : Maruti's joint venture for seat manufacturing starts donating one million masks

Under the new guidelines issued by the Ministry of Home Affairs (MHA) for the extended lockdown period up to May 3, the government, private industries and industrial establishments operating in rural areas, outside the limits of municipal corporations and municipalities, have been allowed to operate from April 20.

Besides, manufacturing, industrial units with access control in special economic zones (SEZs), export oriented units, industrial estates, industrial townships have also been allowed to function.

First Published Date: 22 Apr 2020, 15:27 PM IST
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