The board of directors of Maruti Suzuki India (MSIL) has approved a contract manufacturing agreement between MSIL and parent firm Suzuki Motor‘s (SMC) subsidiary Suzuki Motor Gujarat (SMG), for a new plant in Gujarat.

The agreement is for an initial period of 15 years to be automatically extended for a further period of 15 years, unless terminated by mutual agreement. It could be extended again after the full 30 years.

The Gujarat plant, expected to begin operations in May 2017, will have annual capacity for 750,000 units, ET Auto.com reported.