The greenfield plant involves an initial investment of around Rs 200 crore with plans to invest up to Rs 1,000 crore in this new facility over the next few years based on “market adoption and demand of alternative fuel vehicles in the state.”
The new plant will have a proposed capacity of 2,500 buses per annum which may be expanded to 5,000 vehicles per annum, based on market demand, the company added.
“[The strategy is] production of electric buses, with the flexibility to also assemble other vehicles powered by currently available fuels as well as emerging alternative fuels, to cater to the growing market demand,” Ashok Leyland said in an exchange filing on Friday.
The MoU was signed by Manoj Kumar Singh, infrastructure & industrial development commissioner, Government of Uttar Pradesh, and Shenu Agarwal, managing director & CEO, Ashok Leyland, in the presence of UP chief minister Yogi Adityanath and others.
“This addition reinforces our rapidly growing position as a manufacturing hub of repute within India. The Uttar Pradesh government is eager to attract private-sector investments aligned with our net zero mission,” Adityanath said.
“We are excited to venture into the vibrant state of Uttar Pradesh, and we are confident that this new facility will contribute positively to our shared objectives of generating employment opportunities and promoting sustainable mobility in India,” Dheeraj Hinduja, executive chairman, Ashok Leyland, said.
Ashok Leyland’s mission is to achieve net zero by year 2048, and that is one of the triggers to set up this plant in Uttar Pradesh, Agarwal said.
As part of the MoU, the UP government and Ashok Leyland will also work to develop more policies aimed at accelerating the adoption of electric and green fuel trucks and buses. These policies will target both the public and private sectors, including private schools and private transportation, as part of their efforts to achieve the state’s net-zero objectives.
