The agreement is proposed to be signed between Maruti Suzuki India (MSIL) and Suzuki Motor Gujarat (SMG), a wholly-owned subsidiary of SMC, which will implement the Gujarat project, subject to regulatory and minority shareholder approvals.
"The board of directors of the company at its meeting held on October 1, 2015, has approved the contract manufacturing agreement and the lease deed proposed to be signed by the company with Suzuki Motor Gujarat (P) Ltd subject to this arrangement being approved by the minority shareholders of MSIL and regulatory approvals, if any," MSIL said in a BSE filing.
"After the expiry of an aggregate period of 30 years from the commencement date, MSIL and SMG may mutually discuss and agree to extend the period of this agreement," the contract agreement document said.
MSIL is expected to soon go for the much-delayed minority shareholders' voting on allowing parent Suzuki to own and invest in the Gujarat plant although it has not fixed a time for the same.
MSI had initially planned to set up a new plant in Gujarat, its third, to meet growing demand. However, In January last year, parent Suzuki Motor Corporation announced that it would invest USD 488 million to build the Gujarat plant.


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