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Bajaj Auto unhappy with Maharashtra Govt, considering a plant outside Maharashtra.



Bajaj Auto is now considering a plant set up outside of Maharashtra. The company’s disappointment revolves around the Maharashtra Government's failure to pay Bajaj Auto Limited (BAL) Rs. 1,100 crore as sales tax refunds. The Government last made these of value added tax refunds on 30th April, 2010, and has left them outstanding for 5 quarters now.

Bajaj Auto has manufacturing plants at Aurangabad and Chakan in Maharashtra, and another at Pant Nagar. The company’ soon nearing installed capacity of around 5 million units in regards to production, and the need for a plant will be a near future requirement. MD, Mr Rajiv Bajaj has also voiced his grievance regarding acute labor problems in the Chakan region, and acknowledged that proactive nature of Gujarat government to the industry.

MD, Mr Rajiv Bajaj said, “If the Maharashtra Government is going to be erratic, one has to look at other States. We will consider going to Gujarat. In May, we were told to give a bank guarantee, which we did. But still no dues have been received from the Government.” Only last week, Dr John Chacko, Volkswagen India Chief said pending issues with MH Government needed to be settled in order for expansion plans to come into being.

Indian Express: The Bajaj Group said it may review its investments in Maharashtra. “We are likely to review our investments in Maharashtra as we are finding it tough to do business here. It is a mess here,” said a peeved Rajiv Bajaj, managing director, Bajaj Auto. Rahul Bajaj, chairman of Bajaj Auto, and son Rajiv are upset with the Maharashtra government for denying them their due and failure of the state government to make promised refunds.


Sources: Bajaj Auto unhappy with Maharashtra Government for nonpayment of Rs. 1,100 crore in sales tax refunds | Rush Lane
Hard to do biz in Maharashtra: Bajaj - Indian Express

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Well, even my dad wasn't refunded his tax refund when he should have got it, but that's a different story.
Coming to the topic, it seems there are multiple factors than just one. Let's put them as follows:

Push Factors, that are forcing them out:
- Lack of labor,
- Tax Refund problems,
- Plant nearing its saturation point,

Pull Factors, that are attracting them:
- The Gujarat State government and its support towards industry,

So, only time will tell whether these factors are enough for them to shift, or they'll find a workaround. As of today, Gujarat and Karnataka are the states where every company wants to relocate itself as far as Government support is concerned. Multiple companies have complained of Maharashtra Govt till now.

Noor

News approved

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kwacker

now where is mr. modi with that cell phone of his...

princesirohi

i really feel sad for maharashtra, and angry with the maharashtra government.

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aargee

Welcome to TN or around Chennai

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vrugonnab

Best option for them is to expand patnagar plant in Uttarakhand, which they are already doing and I think they have enough space there for future expansion. They can make good use of 10-year tax holiday that is available over there.

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Naynish

I think Maharashtra Government is not looking at the future potential. Politicians here have ruined the state.

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Digital_shubhi

You are absolutely right sir.

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iChaitanya

I'm not surprised.

MH govt. is useless. They should learn something from Mr. Modi.