Indian carmaker Maruti Suzuki has signed state support agreement (SSA) with the Government of Gujarat to buy land for building a new vehicle manufacturing facility near Mehsana.
The land purchase is in proportion to the long-term management strategy of the carmaker, which is aimed to enhance its production capacity to meet automobile demand in the country.
Under the plan, the company will initially invest INR40bn ($719.7m) to acquire 700 acres of land to construct the facility, which is expected to produce about 250,000 vehicles per year by March 2016.
Maruti Suzuki already has two facilities in Haryana state, one in Manesar and the other in Gurgaon, which collectively produce 1.4 million vehicles per year.
According to the company, the new facility will generate direct employment for about 2000 people while the ancillary units and supplier park in the neighbourhood will offer more employment opportunities.
