The board of Maruti Udyog Ltd will meet on September 23 to decide on setting up a new plant for manufacturing diesel engines in a joint venture with its parent Suzuki Motor Corp of Japan.

SMC had on September 13 announced that a new company, tentatively called Suzuki Maruti India Ltd, will be set up as a joint venture between Suzuki Motor Corp and MUL. The company would set up a new automobile assembly plant in Manesar, Haryana with a capacity of 250,000 units per annum.

The new plant is scheduled to begin operations in the start of 2007.

"The meeting of the board of directors of the company (MUL) will be held on September 23, 2004 to discuss the subject of setting up a new automobile assembly company," Maruti informed the Bombay Stock Exchange.

On Monday, Suzuki had announced an over Rs 1,000 crore (Rs 10 billion) investment in the diesel plant and said it would form a joint venture with Maruti for a new car assembly plant.

The announcement hammered the scrip price of Maruti with reported fears that MUL would not gain from the proposed joint venture for the upcoming car manufacturing unit.