AP come forward to offer necessary support for ALL's LCV project

Hyderabad: The Andhra Pradesh Government has offered to extend necessary support for the greenfield light commercial vehicle (LCV) plant proposed by Ashok Leyland Ltd.

The State has offered three sites for the greenfield project that will have the capability to produce 1,00,000 vehicles with investment of about Rs 1,500 crore initially to be scaled up to Rs 3,000 crore in a phased manner.

A team of officials recently called on the Chief Minister, Dr Y.S. Rajasekhara Reddy, expressing their intent to set up a unit in the State and was assured of all necessary support.

Following this, the State Industries Department and Andhra Pradesh industrial Infrastructure Corporation (nodal one-stop agency for all mega projects) have been co-ordinating with Ashok Leyland.

The company was offered the option of selecting one of the three sites proposed located at Vizag, Nellore and another site near Hyderabad. Interestingly, Vizag and Nellore were on the radar of German car company Volkswagen AG’s car plant, which eventually decided to locate it in Maharashtra.

Land acquisition

The company indicated that they would require about 600 acres and is inclined to opt for the site near Nellore as it serves them as an ideal location logistically.

The company has indicated that they would visit these three sites and come up with a detailed proposal.

Last month, Ashok Leyland and Japanese company Nissan Motor Company Ltd, signed agreement for forming three joint venture companies to produce LCVs, power trains and for research and development.

While Tamil Nadu could be the preferred option, being a manufacturing base and a logistics hub for export, they are evaluating Andhra Pradesh too, before finalising plans, it is learnt.