New Delhi, July 7: Maruti Udyog's (MUL) board on Monday cleared purchase of plant and machinery worth Rs 330 crore, setting the ball rolling for the company's Rs 1500-crore first phase of expansion.

The capital expenditure for the paint shop and the press shop is being funded by internal accruals and reserves.

The three-hour meeting also adopted accounts for the financial year 1996-97, with the company posting a profit after tax of Rs 510 crore and a profit before tax of Rs 808 crore. Last year, the company posted a profit before tax of Rs 652 crore and and a profit after tax of Rs 427 crore.

The board also agreed on a 20 per cent dividend for the shareholders, the union government and Suzuki Motor Corporation. It also agreed to raise the gratuity limit to Rs 2.5 lakh for all Maruti Udyog employees, up from Rs 1 lakh.

The board, however, deferred discussions for buying land in Noida to build a new corporate office. The meeting was attended by managing director RC Bharagava, secretary heavy-industry and chairman Probir Senguta and by government and Suzuki nominees. u

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