Shares of leading two- and three-wheeler maker - Bajaj Auto - rose nearly 1.5 per cent on the BSE a day after it signed a memorandum of understanding with the government of Maharashtra for setting up a manufacturing facility at Chakan near Pune. Bajaj Auto will invest Rs 650 crore on the proposed manufacturing facility at Chakan, the Pune-based company said in a stock exchange filing.
The manufacturing facility will start production from 2023 and will be utilised for making high-end KTM, Husqvarna and Triumph motorcycles as well as for electric vehicles starting with Chetak, Bajaj Auto said.
"Under the arrangement, the Government of Maharashtra will facilitate Bajaj Auto in obtaining necessary permissions/ registrations/ approvals/ clearances/ fiscal incentives etc. from the concerned departments of the state, as per the existing policies/rules and regulations of the Government of Maharashtra," Bajaj Auto said in a statement.
"The proposed investment further reinforces the commitment of Bajaj Auto to the state of Maharashtra where the journey began. And it is being done in the year when Bajaj Auto celebrates its 75th Anniversary," Bajaj Auto added.
As of 12:14 pm, Bajaj Auto shares were up 1.3 per cent at Rs 3,310, outperforming the Sensex which was up 0.6 per cent. Bajaj Auto shares have so far this year risen nearly 4 per cent. However, from lows of March, when the nation-wide lockdown was announced, Bajaj Auto shares have rallied a whopping 72 per cent from a low of Rs 1,924 touched on March 24.
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