Bajaj, Ashok Leyland eye Uttaranchal

After Bajaj Auto, Ashok Leyland is also exploring the possibility of setting up a manufacturing unit in Uttaranchal.

Bajaj Auto is the latest entrant in the race to establish a greenfield manufacturing unit in the thriving Pantnagar industrial estate in Kumaon region with an investment of Rs 500 crore.

Meanwhile, Ashok Leyland is in talks with the top Uttaranchal government officials for setting up a new unit in the state.

For this purpose, the company is exploring the possibility of installing a manufacturing unit at Sitarganj industrial estate which is being developed by State Industrial Corporation of Uttaranchal Limited (SIDCUL).

"The talks are at very preliminary stage. But we are hopeful that Ashok Leyland official would make up a mind very shortly," a government official said.

Already, Tata Motors had deposited initial amount of Rs 7 crore for setting up a manufacturing unit at Pantnagar industrial estate which is already bursting at seems with hefty investments from top-notch companies like Britania, Parley Biscuits, Nestle India.

On the other hand, Bajaj Auto company would invest Rs 500 crore in its Pantnagar industrial estate manufacturing unit for motrocycles.

The company would produce 90,000 motorbikes per month. This part of the company's Rs 15 crore expansion plan.

Bajaj Auto is planning to raise production capacity to 51 lakh units "" 46 lakh two-wheelers and five lakh three- and four-wheelers, per year by 2009. In the first phase of the expansion, the company plans to expand motorcycle capacity to 36 lakh units per year by the year 2007.

The company has set a sales target of 28.5 lakh units for the financial year 2006-07, including exports of 3.65 lakh units. It is aiming to sell a total of 25.5 lakh two-wheelers and three lakh three-wheelers.