Maruti Suzuki India gains permission from the government to resume operations at Manesar facility

Published On : 24 April 2020
By Preethi

The country's largest carmaker has gained permission from Haryana administration to open Manesar facility subjected to the given constraints:

  • The maximum number of personnel involved: 4696 personnel but the authorities recommend no more than 600.

  • Operation shall take place in a single shift setup only.

  • Allowed to operate under clause 15(ii) of Ministry of Home affairs.

The government has given nod to operate the Manesar facility under clause 15(ii) of clause 15(ii) of the Ministry of Home affairs. Gurugram Deputy Commissioner stated, “Permission is hereby granted to Maruti Suzuki India, to operate the establishment during the lockdown period".

As per the permission granted by the government, the plant can function with 4696 personnel at the max, but authorities recommend no more than 600 working in a single shift setup. The document states that Maruti is allowed to produce 50 cars a day once the operation resumes. If operations resume in the facility, strict protocols, and social distancing have to be made mandatory.

According to the reports, the Manesar facility is subjected to physical inspection and submission of necessary documents to the concerned authorities before the commencement of operation. It seems the MSIL authorities have not given official announcements about the reopening of the facility. So, as of now the date for commencement of operation is uncertain. Commenting on the improvement Mr. RC Bhargava, MSIL Chairman told PTI, “We will start operations whenever we can maintain continuous production and sell (vehicles), which is not possible at this point of time". Sources tell us that there are inventories stocked in the yard of the Manesar plant which is yet to be dispatched to the dealers once the lockdown is lifted.

The Manesar facility temporarily suspended operations from March 22 due to a nationwide lockdown. The Manesar facility alone has a manufacturing capacity of producing 8,80,000 units per annum in three shifts and in three assembly facilities. Additionally, the Gurugram facility has a manufacturing capacity of 7,00,000 units per annum, and in two shifts and in two assembly facilities. Given the current situation, the possibility of resuming operation is weak. Other carmakers like Mahindra and Mahindra have made clear about reopening the manufacturing facility stating “We don't have any requirement to open our automotive plant immediately and none of our plants fall in relaxed zone. Our suppliers are also in the red zone." Almost 90% of the Auto hub across the country is located in the red zone. The reason is either some local permission has not still come or the supply chain needs more time to get activated. However, the Manesar facility is an exception. Stay tuned for further updates.