Auto companies may go on expansion drive in Uttarakhand

Auto companies in the state are likely to go on an expansion drive buoyed by better-than anticipated sales over the past few quarters.

Tata Motors, Hero Honda and Bajaj Auto, which have set up their manufacturing units here, are in talks with the state government in this regard, industry sources said.

The government, on its part, is collecting information on free land that could be given to companies that want to expand.

'We have got information that most of the auto companies are expanding their units in the state,' said Chief Minister Ramesh Pokhriyal Nishank, who is keen to develop the state into a hub for automobiles manufacturing.

Several large companies, including Tatas, Hero Honda and Ashok Leyland, have set up units in the state drawn by its investor-friendly investment policy that offered excise exemptions.

Though the excise waiver came to an end in March this year, certain other benefits like income tax rebate and capital subsidy continue to make the state a lucrative destination for investors, officials said.

Ashok Leyland's new manufacturing unit at Pantnagar began production of commercial vehicles in March this year and the government is hopeful of other companies expanding their manufacturing units as well.

Tata Motors, which still have over 300 acres of vacant land at Pantnagar, have assured the government that they won't exit from the state after their Sanand plant goes on stream.

Meanwhile, the government has also cleared a proposal to provide 55 acres of land to Tata Motors for a housing project.