Maharashtra government close to finalising deal with Chrysler for making Grand Cherokee in state

MUMBAI: The Jeep Grand Cherokee, the marquee sports utility vehicle of US auto maker Chrysler, would soon be made in India. The Maharashtra government is close to finalising a deal with the auto major to set up a factory at Ranjangaon in Aurangabad district, state government officials said on Tuesday. Chief Minister Devendra Fadnavis, who is on a seven-day visit to the US, was scheduled to meet top Chrysler executives during the day, they said.

Fiat, which owns Chrysler, already has a plant at Ranjangaon, but Maharashtra government officials said the US company would set up a new facility.

State officials said the company would invest Rs 1,750 crore to set up the plant in the first phase and Rs 3,500 crore in the next six years. Manufacturing the Grand Cherokee and other models locally would reduce their price here, as imported vehicles attract much higher tax rates.

The Fadnavis government has launched a host of measures since coming to power to show the state as investment-friendly and the Chrysler investment, if it happens, would come in as a vindication of its efforts. Power rates for industries in the state, which until a year back were among the costliest in the country, have now been scaled back. The state is planning to cut the tariffs further.

An official said that besides Chrysler, the state government was also involved in talks with General Motors to expand its manufacturing unit at Talegaon. However, an agreement is unlikely to be inked during the CM's ongoing visit as the company has conveyed to the state that it would proceed on the move only after getting a go-ahead from its board. Meanwhile, Coca-Cola has announced that it would invest Rs 500 crore for setting up a plant at Chiplun in the Konkan region after Fadnavis held a meeting with its executives.