Maruti Suzuki May Bargain on HSIIDC’s Rs 235 Crore Payment for Reopening

Gurgaon (I-Haryana News): Haryana Government which on June 25, asked India’s largest car making company, the Maruti Suzuki India either pay Rs 235 crore or get ready to vacate Manesar plant land as enhanced compensation for land allotted to company and, now all of sudden fire incidence has made government so defensive that encourages Japanese to settle enhanced compensation in lieu of soon reopening and not shifting of its Manesar plant.

It is to mention that the Maruti Suzuki India have met Chief Minister, Bhupinder Singh Hooda and  HSIIDC's Managing Director Rajeev Arora before fire at Manesar on payment of Rs 235 crore but flatly  told to obey the Supreme Court order to pay as enhancement to the farmers, as government was at its dictating terms with Suzuki.

After Manesar fire, the scenario has completely, the Maruti Suzuki India, which was earlier, requesting Haryana Government to get some relaxation on Payment of Rs 235 crore as enhanced land compensation, now in position to bargain the best deal for them, as Japanese are considered hard bargainers when they at advantage.

In 2002, the Chautala government acquired 3,000 acres of land for Maruti at Rs. 2.25 lakh per acre.

It is also pertinent to mention here that, the Maruti Suzuki India top management including its Chairman R C Bhargava and Managing Director and CEO, S. Nakanishi met Chief Minister, Mr. Bhupinder Singh Hooda on July 23, in New Delhi, But after meeting both sides did not able to sort out the issue as no one cleared what discussed during the meeting and when we can see production in Plant again. 

As per information with IHN, Maruti Suzuki and Chief Minister, Mr. Hooda are all set to meet on Wednesday in New Delhi after President Oath again to struck deal for reopening of Manesar plant, there both Parties would try to bargain hard.

As on Tuesday, Haryana government has tried to show some flat indicators to Maruti Suzuki India, when first, the information about Rs 235 crore due against it was released, and after that Special Investigation Team prima facie finding leaks that Maruti Suzuki Management ignored police and intelligence reports warning about flaws in contract labour system of the company, and was even asked to overhaul its recruitment process, which company did not heed the advice which resulted into fire at Manesar on July 18.

After, Fire Haryana government has first time tried to show Maruti Suzuki Management that the fault is also lay with them that also just before a day meeting with Chief Minister but with care as HSIIDC, junior level officer shared information on Rs 235 crore due against Maruti Suzuki and after that SIT told media about flaws made by Company, which bring MSI in dock with view that if to put some pressure on them to come on compromise stage to this impasse.

The Flaws on account of Maruti Suzuki Management were purposefully leaked to convey them that there was incompetency in management part, which leads to mayhem at Manesar.

The last not the least, both sides know their interests, first Maruti would like to get relief in Rs 235 crore payment in lieu of any deal for reopening, if will able to get, than it could stop deceasing net profit of Maruti Suzuki further, which had came down to Rs 16,351 Millions in 2011-12 from Rs 22,887 Millions of 2010-11, whereas, Haryana Government led by Mr.Hooda knows if this industrial impasse was not solve amicably and soon than it can hamper industrial investment in the state in days to come.

Both have their interests, hopefully, we could see decision of reopening of Maruti Manesar plant after tomorrow meetings.

Source: Intelligent Haryana News

Dinesh Singh Rawat's Views:

As lines have been drawn  by both sides, what to give or what not to give, now only matter remains is when and how, if tomorrow meeting will  held between Chief Minister, Mr. Bhupinder Singh Hooda and Maruti Suzuki India over Manesar restart than it should be the conclusive on the matter, we will hope to end impasse soon.