Leyland ups investment in Uttaranchal by Rs 1,000 cr
Shishir Prashant / Dehra Dun February 26, 2008
Despite a slowdown in the auto sector, Ashok Leyland, the flagship company of the Hinduja Group, has decided to double investment in Uttaranchal from Rs 1,000 crore to Rs 2,000 crore as a part of its expansion plan.
In a new plan submitted to the State Industrial Development Corporation of Uttarakhand (SIDCUL) here, Ashok Leyland said it was interested in buying another 17 acres at Pant Nagar for a manufacturing facility at an investment of Rs 1,000 crore.
The company has already bought 175 acres at Pant Nagar for manufacturing commercial vehicles and engine parts. The company would be manufacturing 40,000 annually, according to sources.
The company has also promised to provide employment to 2,200 persons, mostly locals.
The company bought the land from the state government at Rs 1,500 per sq metre. Now, SIDCUL is planning to charge an enhanced rate of Rs 2,500 per sq metre, according to sources. A decision regarding the land allotment would be taken shortly, sources said.
A slew of auto manufacturers is setting up new facilities in Uttarakhand to avail of tax benefits announced by the Centre in 2003.
Tata Motors, Bajaj Auto, Hero Honda and Mahindra & Mahindra are among some of the top companies that are setting up shop in the state.
Hero Honda was first off the ground with a plan for a Rs 1,200 crore plant in Haridwar. The company has bought 275 acres for the plant.
Tata Motors, along with a host of its parts suppliers, is investing Rs 1,859 crore for its manufacturing facility in the Pant Nagar industrial estate. The company will be producing Ace trucks there, for which it bought 1,000 acres.
Pant Nagar has also attracted an investment of Rs 500-600 crore from Bajaj Auto, which would establish a manufacturing unit for producing motorbikes.