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Ashok Leyland to set up electric bus plant in Uttar Pradesh
Industry News- Sep 18,23
The MoU was officially signed by Manoj Kumar Singh on behalf of the government and Shenu Agarwal, the managing director and CEO of Ashok Leyland.
Ashok Leyland, a prominent commercial vehicle manufacturer, has made the strategic choice to establish its electric bus manufacturing facility in Uttar Pradesh, with the possibility of situating it in Lucknow, pending successful proceedings. The formal agreement, known as a memorandum of understanding (MoU), was officially inked during a ceremony attended by Chief Minister Yogi Adityanath.
The anticipated timeline for the operation of this new manufacturing unit is approximately 18 months from now. It's worth noting that the MoU leaves room for flexibility regarding the final location of the unit, according to informed sources.
In the selection of a suitable location, Ashok Leyland has opted for the land owned by Scooters India (SIL) in Lucknow as the site for its electric bus manufacturing endeavour, as confirmed by Manoj Kumar Singh, the commissioner for infrastructure and industrial development. The company is set to receive around 70 acres of SIL's land for this purpose. Initially, an investment ranging from Rs 200 to Rs 500 crore will be allocated for the first phase, followed by a subsequent investment of Rs 1,000 crore. Furthermore, the company has expressed intentions to explore battery manufacturing in the future.
The MoU was officially signed by Manoj Kumar Singh on behalf of the government and Shenu Agarwal, the managing director and CEO of Ashok Leyland. Chairman Dheeraj Hinduja of Ashok Leyland revealed plans for the Uttar Pradesh unit to commence operations within the next 18 months. He expressed enthusiasm for the collaboration, highlighting its potential to contribute to job creation and the advancement of sustainable mobility in India.
Insiders familiar with the matter suggest that the initial production target for the company is 2,500 buses annually, with plans to scale up to 5,000 units later. Chief Minister Yogi Adityanath has urged the company to expedite production, with the goal of supplying new electric vehicles for the grand Kumbh Mela event in 2025.
Adityanath praised Ashok Leyland's investment decision in Uttar Pradesh, emphasising its timeliness and potential benefits for the entire Hinduja Group. He reaffirmed the state government's commitment to providing security and support to all investors. He also highlighted the state's efforts to attract private sector investments in alignment with the Net Zero mission, including policies supporting electric vehicle manufacturing.
Dheeraj Hinduja commended the Uttar Pradesh government for its swift decision-making process, with discussions regarding the investment held on August 10 and the signing of the MoU just 36 days later on September 15. He expressed hope that such efficient processes could transform the industrial landscape in other states as well.
Nand Gopal Gupta 'Nandi,' the Minister for Industrial Development, Export Promotion, NRI, and Investment Promotion in Uttar Pradesh, lauded Ashok Leyland's decision, anticipating that it would not only bolster the company but also create additional job opportunities, enhance skills, and fortify the regional economy, especially for the youth.
Source: Hindustan Times
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