Maruti Udyog Ltd on Thursday said its two new plants for engine manufacturing and assembly line production will be operational by the end of the year.
"They (the two plants) will be running by December 2006," MUL Chief General Manager Finance Ajay Seth said.
The total capital expenditure on the plant will be Rs 3,300 crore (Rs 33 billion) comprising 35 per cent equity and 65 per cent debt.
He said the company has raised Rs 1,500 crore (Rs 15 billion) through ECBs and their equity in the plant will be Rs 600 crore (Rs 6 billion). The two new plants are coming up in association with Suzuki at Manesar in Haryana.
Responding to rising fuel prices, Seth said, that the company would focus on cost reduction and improving productivity. On the impact of increase in lending rates, he said, that it will not have a major effect on the company.
"We have seen much higher interest rates in the past and the current increase is marginal," Seth said. On inflation, he said, that it would remain in the vicinity of five per cent in the current fiscal and in the next fiscal it may be in the range of 5.5 to 6 per cent.
Reacting to the rumours of a possible cut in excise duty in the coming budget, he maintained that it was very difficult to predict.
