Bajaj Auto Ltd.

Bajaj Auto, world’s fourth largest two- and three-wheeler manufacturer, is likely to set up its fourth and largest plant near Mundra port in Gujarat that will also manufacture its planned low-cost minicar with Nissan-Renault. The five million units per annum capacity plant will initially require an investment of over Rs 1,000 crore. Bajaj plans to export at least 60% production from there.

The company’s move to look outside Maharashtra, its base, comes after a 15-month dispute with the state government, which has held back its Rs 1,100-crore sales tax refund from April 2010. Instead, last week, the government slapped a Rs 600-crore notice on the company for non-payment of sales tax for 2009-10.

The entity started its operations in Maharashtra 50 years ago, can make 3.5 million two- and three-wheelers at its plants in Chakan and Aurangabad. Its unit in Pantnagar in Uttarakhand can make 1.5 million vehicles.