Chandigarh, May 17 (IANS): After making its maiden foray in Gurugram in 1983, country's largest car maker Maruti Suzuki India Ltd is going to set up its third facility with an outlay of Rs 18,000 crore in Haryana that will give boost to the auto industry.

The automaker already has two manufacturing facilities in Haryana. The upcoming facility will have a production capacity of 250,000 vehicles per annum and is expected to be commissioned by 2025.

In the past few years, Haryana has made rapid strides on several fronts, including industrial development, under the leadership of Chief Minister Manohar Lal Khattar, an official statement said on Tuesday.

Haryana is well on its way to inclusive growth driven by a strong commitment of the government towards public welfare and ensuring the advanced facilities to its citizens.

Likewise, the government is actively working towards making the state an industrial and automobile hub.

The growth in automobile sector in the state can be gauged by the fact that Maruti Suzuki is coming up with its third plant in the state.

Maruti Suzuki India Ltd, Suzuki Motorcycle India Private Ltd and Haryana State Industrial and Infrastructure Development Corporation Limited (HSIIDC) will sign an agreement for the allotment of 800-acre and 100 acre land at IMT Kharkhoda, respectively, at a ceremony on May 19 in Gurugram amidst the presence of the Chief Minister.

The event would also celebrate the four decades of Haryana-Japan business relationship, which began in 1981 and continues to flourish even today, says the statement.

Chief Minister Khattar said this is a huge achievement for the state as Maruti is setting up its third plant in the state.

He said Maruti Suzuki has purchased an additional 800 acres at IMT Kharkhoda for its proposed new car manufacturing facility. The total project cost is estimated to be Rs 18,000 crore.

It has the potential to generate employment for 11,000 skilled, unskilled and semi-skilled persons. Along with Maruti Suzuki, Suzuki Motorcycle India Private Ltd has also purchased a 100-acre land parcel for setting up an integrated manufacturing facility for two-wheelers, including engines.

The total project cost is estimated to be Rs 1,466 crore, with a potential to generate employment for 2,000 skilled, unskilled and semi-skilled persons.

"India is performing well in the ease-of-doing business and the ease-of-living index and Haryana is considered the fastest in both these respects. Haryana is one of the favourite destinations for global investors. Maruti played a major role towards development in the automobile sector and overall progress of the state," said the Chief Minister.

"This will give a huge boost to the automobile sector and will motivate multinational companies in other sectors to set up their headquarters and manufacturing plants in Haryana. Along with this, new employment opportunities will also be created for the youth of the state.

"Haryana has emerged as a magnet for the industry due to its enabling policies, availability of quality infrastructure, ease-of-doing business, conducive business environment and incentive structure. In Haryana, work was done to develop the industrial areas near the GT Roads and its proximity with Delhi other states too made it more preferred destination for industrial projects and there are dozens of industrial areas in multiple districts," said Khattar.

The Industrial Model Township (IMT) at Kharkhoda, where Maruti Suzuki will be setting up its project, is an integrated industrial township with world-class infrastructure, being developed over an area of approximately 3,217 acres.

It is strategically located on the Delhi-Haryana border, adjoining the western peripheral (Kundli-Manesar-Palwal) Expressway and State Highway 18. The IMT has abundant water and power supply from the NCR canal and the electricity utilities.

Due to its proximity to Delhi and direct connectivity with Delhi Bahadurgarh, Gurugram and Sonipat via the KMP Expressway, Kharkhoda IMT will emerge as the next node for industrial development in Haryana.

Regarding the expansion of Maruti Suzuki's foothold in Haryana, a spokesperson for the carmaker company said the company was in discussion with various state governments for their expansion plan but they find Haryana a suitable destination.

"This first manufacturing facility at the site will have a production capacity of 250,000 vehicles per annum. It is expected to be commissioned by 2025. The land site will have space for capacity expansion and will include more production plants in the future," said the spokesperson.

Notably, after setting up its first car plant at Gurugram in 1983, Maruti has steadily expanded its manufacturing footprint in Haryana by setting up a production facility at Manesar and a state-of-the-art R&D centre in Rohtak.

The two plants in Haryana - Gurugram and Manesar - together roll out around 15.5 lakh units annually. Today, the Gurugram-Manesar-Bawal belt is acknowledged as the auto hub of northern India.