Ashok Leyland will build a plant to manufacture electric vehicles in Lucknow, the capital of Uttar Pradesh. For this, the company will be given vacant land of the closed factory of Scooters India. As per the provisions of FDI Policy-2023, the Government has found the project proposed by the company eligible to avail the benefit of front-end land subsidy.

Proposal to give 75 percent front-end land subsidy

Later, the Industrial Development Department offered Ashok Leyland a 75 percent front-end land subsidy for the project at Scooters India Limited (UPCIDA) on 70 acres of land. Infrastructure and Industrial Development Commissioner and Invest UP President Manoj Kumar Singh has sent the letter of approval to the company's MD and CEO Shenu Agarwal.

Integrated green-field plant to be set up

This proposed project will be on the land of Uttar Pradesh State Industrial Development Authority (UPCIDA). A green-field plant, including a Center of Excellence, will be set up under the project to manufacture commercial electric vehicles with an installed capacity of 2,500 vehicles. This project will produce vehicles based on different fuels given the demand for electric and other types of vehicles in the market.

The project will start at Rs 186 crore

An investment of Rs 186 crore is required to implement the proposed project in two phases. Ashok Leyland had demanded seventy acres of land for this. On September 15, this year, the Uttar Pradesh government and Ashok Leyland signed an MOU. This will be Ashok Leyland's first plant in Uttar Pradesh. Ashok Leyland will primarily produce electric buses at this plant, which can assemble other vehicles powered by currently available fuels as well as emerging alternative fuels.