Ashok Leyland's electric bus plant inaugurated in Lucknow

Uttar Pradesh Chief Minister Yogi Adityanath

Hinduja Group's flagship company Ashok Leyland has commissioned its integrated electric bus manufacturing plant on the outskirts of Lucknow, the capital of Uttar Pradesh.

The greenfield unit was inaugurated by Defence Minister Rajnath Singh, Uttar Pradesh Chief Minister Yogi Adityanath and Union Heavy Industries minister D H Kumaraswamy on Friday (January 9).

On the occasion, Adityanath said the plant is a key milestone in the state's industrial development journey and commitment towards environment conservation.

"Today, Uttar Pradesh is not merely a state of 'unlimited potential' but a state converting potential into actual achievements," he said, adding that UP now tops the 'Industry First' and 'Investor First' matrices.

The CM noted that UP does not suffer from the erstwhile policy paralysis of the previous governments, but contributes to India's industrial growth story.

"UP accounts for 9.5 percent to India's GDP and the state's economy is expected to touch Rs 36 trillion by the end of the current financial year," he claimed.

Adityanath alleged while investors were fleeing the state during the earlier regimes, UP had logged investment proposals to the tune of Rs 45 trillion of which projects worth Rs 15 trillion had been launched in the groundbreaking ceremonies.

"Now, we are ready to launch projects worth Rs 6 trillion next month, while another basket of projects totalling Rs 5 trillion are in the pipeline," he added.

He maintained that UP had become a preferred destination for domestic and global investors, and the Ashok Leyland plant would further catalyse its investment ecosystem.

Ashok Leyland has committed to invest Rs 1,000 crore in the Lucknow plant, which has an initial capacity to produce 2,500 vehicles per annum. It would be ramped up to 5,000 vehicles per year in the next phase depending upon the market demand.

On September 15, 2023, an memorandum of understanding (MoU) was signed between Ashok Leyland and the Uttar Pradesh government for the setting up of the Lucknow plant.

Therefore, the new plant has been commissioned in less than 16 months since the signing of the MoU.

The company has already announced plans to convert its entire fleet of diesel buses and commercial vehicles into electric and other alternative fuels in the coming years.

Interestingly, UP is among India's leading electric vehicles (EVs) market even as the UP State Roadways Transport Corporation (UPSRTC) is keen to convert its fleet of nearly 12,000 buses to EVs in the coming years.

In his address, Rajnath Singh observed that the Ashok Leyland plant would bolster UP's economic and industrial development roadmap and provide mass employment opportunities.

UP is also emerging as a major defence industry hub with the UP Defence Corridor spread over 6 nodes including Lucknow, he added.

He said UP, which was once considered to be a BIMARU state, has emerged as a preferred investment destination owing to the proactive policies of the Yogi government and Prime Minister Narendra Modi's vision.

"The path to a developed India passes through a developed Uttar Pradesh," Rajnath Singh underlined.