Farmers' demand for the withdrawal of the SIR (Special Investment Region) notification in the Mandal Becharaji belt will not affect the expansion plans of Maruti Suzuki India Ltd (MSIL), the carmaker's Chairman R C Bhargava said.

Maruti Suzuki, the country's biggest car maker, was allotted nearly 700 acres of land by the Gujarat government near Mehsana for setting up of third manufacturing unit, and the company itself acquired another 700 acres of land in Vithlapur for setting up its second unit in the state.

But, earlier this week, 36 out of 44 gram sabhas in the Mandal Becharji belt passed a resolution demanding the removal of the SIR notification, putting a question mark on the car maker's expansion plans.

However, MSIL Chairman R C Bhargava said that they were already constructing boundary walls around the plots in Mehsana and Vithlapur, and they faced no problem from farmers.

Speaking on the topic, Bhargava said, "Work has started to construct boundary walls around the plots. We have not faced any problems from local people in the areas. Our expansion plans are on track."

MSIL has plans to invest Rs 4,000 crore to make operational the new facility in Mehsana, which will be completed by 2015-16 with an initial capacity of nearly 250,000 units. The company's second unit in Vithlapur would almost double its annual output capacity to 3 million units on complete commissioning.