After Honda Motor cycle and Scooters India (HMSI) threatened the Haryana Government last year to move out of the state if the labour problems stretch over a point, it seems that the company is looking for a future outside Haryana. The company has started to build its second plant in Bhiwadi, Rajastan earmarking a whopping investment of Rs. 1100 crore.

The company expects to produce almost 12 lakh units per annum from its second plant. HMSI will be investing Rs. 500 crore in the first phase wherein, the company will start production with the initial capacity of six lakh units per annum over a five year period. In the second phase it will allocate the rest Rs. 600 crore to take the total capacity up to 12 lakh units.

While the company officials refused to confirm the development, a top government official said that the company will start its construction work this month. It was last year that the company faced a situation of chaos after the labour went on strike, resulting in a loss of Rs. 300 crore after the production came down by almost 50%.