NEW DELHI, July 13: The Rs 1,650-crore Escorts Ltd has set July 31 as the deadline for a decision on the site for its new Rs 150-crore tractor plant.The move follows the Maharashtra government's delay in allotting land for the project at Ranjangaon.

Escorts now feels that Tamil Nadu will be best option after the Maharashtra site, where the company had planned to set up an industrial complex at Ranjangaon at a total investment of Rs 250 crore. This was to have housed its new tractor unit and the joint venture with Carraro.

Rakesh Chopra, head of Escorts's agri-machinery division, said that the Maharashtra government was awaiting the go-ahead from Skoda, Fiat and Bajaj Auto for their projects at Ranjangaon before allotting land to Escorts.

Some these companies are also considering Chaklan industrial area for their workshops apart from Ranjangaon.

However, Chopra said, "Our (Escorts) target is to commence production at the new tractor plant by March 1999 and, in order to be on course, we need to consider other options."

Escorts has been also been approached by the Tamil Nadu, Andhra Pradesh, Madhya Pradesh and Karnataka state governments. Chopra said these governments were offering similar tax and duty incentives as had been offered by the Maharashtra government.

Escorts had originally decided on Ranjangaon so that it could establish its presence in the southern and western regions. This was because the company already commands a sizable market share in the north. Escorts' new plants will also add significantly to the company's production capacity in the agro-machinery wing.

Escorts has projected a production target of 51,000 units of tractors and farmtracs for 1997-98. For 1998-99, the target is 61,000 units, which is expected to grow to 68,500 units and 77,000 units in the next two financial years.

The company has also projected an export volume of 1,000 units of tractors and farmtrac during the current financial, which it expects to grow to 3,000 units in 1998-99. Escorts is planning to launch four new models of farmtracs and tractors in the 20HP-70HP range in the current financial year.

Escorts proposed joint venture with Carraro is expected to commence commercial production by October 1998.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.