Maruti threatens to shut Manesar plant over additional land compensation

Currently produces 500,000 cars annually, a figure that was set to rise to 750,000 units eventually.

Maruti Suzuki has threatened to shut its key Manesar plant in Haryana as it faces the prospect of paying additional compensation worth more than 5 billion rupees (USD84 million) for the 600 or so acres of land where the plant is sited, reports the Times of India. "If further enhancement is granted, the [Maruti] management may have to take a decision to discontinue the plant at Manesar," said counsels P S Patwalia and Abhishek Manu Singhvi while appearing for the company before the Supreme Court. The counsels also claimed that if the company closes its manufacturing activities at Manesar, more than 20,000 workers will be made jobless and Haryana will suffer a revenue loss of INR80 billion. The higher compensation was initially awarded by the Punjab and Haryana High Court in 2011, and this had been contested by the landowners – who wanted an even higher award – and the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC) in the Supreme Court.