New Delhi, Aug 17: The Rs 1,650-crore Escorts Ltd is reviewing its options on the location of its Rs 250-crore agri-machinery project after receiving a revised offer from the Maharashtra state government.

The company had earlier almost made up its mind to set up the project in Tamil Nadu following the Maharashtra government's delay in allotting land at Ranjangaon near Pune.

Escorts' project includes a new tractor plant at a cost of Rs 150 crore, and a joint venture with Carraro for auto transmission equipment, in which the company will be investing Rs 100 crore.

Escorts' agri-machinery division head Rakesh Chopra said the company is currently scrutinising the advantages and disadvantages of the alternative plots which have been offered by the Maharashtra government. "However, the plot we had originally asked for has been already allotted to another corporate house," Chopra added.

The Maharashtra government had kept Escorts' bid for a site at Ranjangaon pending since it was awaiting the final nod from Skoda, Bajaj Auto and Fiat for their projects at the same place.

Chopra stated that Escorts has postponed its final decision on the site for the project till August-end. Earlier, the company had set a deadline of July 31 for the final decision.

Chopra further said that the company plans to initiate construction work for the joint venture (with Carraro) plant by September-end this year.

Construction at the tractor plant is to begin by the year-end. Escorts is well prepared for the two plants in terms of financial resources as well as blueprints of their designs.

On the production targets, Chopra said that in the initial phase the company was planning to produce 12,000 tractors and nearly 13,000 units in the joint venture plant with Carraro. The joint venture plant's production capacity will be enhanced by 5,000 units in five years' time from the day of its commencement, he added.

Escorts is planning to commence production in the tractor plant by March, 1999, by virtue of which it can establish its presence in the southern and western agri-machinery markets of the country. The company has already captured a significant market share in the north.

For the current financial year the company has set itself a target of 51,000 tractor units, which it plans to increase to 77,000 in the next four years.

The company has also projected a three-fold improvement in its tractors' export by the end of the next financial year. For the current fiscal, Escorts is projecting an export of 1,000 units of tractors.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.