Shishir Prashant / Dehradun, 03 Mar 2008

The Uttarakhand government has cleared a proposal of Ashok Leyland for the expansion at Pantnagar industrial estate on a priority basis.

In its plan submitted to State Industrial Development Corporation of Uttarakhand (SIDCUL) Ashok Leyland, the flagship company of Hinduja Group, had said it was interested in buying another 17 acres Pantnagar industrial estate where it is setting up a manufacturing facility with an investment of Rs 1,000 crore at 175 acres.

“We have cleared the proposal,” said S P Tripathi, general manager, SIDCUL.

The company would now double its investment to Rs 2,000 crore from Rs 1,000 crore, said the SIDCUL officials.

Ashok Leyland is also planning to produce commercial vehicles and engine parts. The company would be manufacturing 40,000 vehicles a year and promises to give employment to 2,200 largely from Uttarakhand.

Earlier, the company had bought land from the state government at the rate of Rs 1,500 a sq mt. And now for 17 acres, the SIDUCL sold the land at Rs 2,500 a sq mt, the sources said.

The Hindujas Group has recently put up its expansion proposal before Chief Minister B C Khanduri, who promptly gave the green signal.

Besides Ashok Leyland, a slew of auto industries are setting up their new units in Uttarakhand to take the benefits of the tax holiday scheme announced by the Centre in 2003. Tata Motors, Bajaj Auto, Hero Honda and Mahindra and Mahindra are among some of the top companies, which are setting up their facilities in the state.

Hero Honda was among the first auto companies to enter Haridwar, where it is setting up a new unit with an investment of Rs 1,200 crore. The company has bought 275 acres for the facility.

Tata Motors along with its ancillaries is investing Rs 1,859 crore at its manufacturing facility in Pantnagar industrial estate. The company would be producing its Ace trucks for which it has already bought 1,000 acres.

Bajaj Auto is also investing Rs 500-600 crore to set up a manufacturing unit for producing motorbikes in Pantnagar.

News Source: http://www.business-standard.com