Auto ancillaries flock to Uttarakhand

As the big auto giants set shops in Uttarakhand, scores of ancillaries have also rushed to the hill state.

In the industrial estate of Pantnagar, where the manufacturing of the much-hyped Nano project was originally planned, the Tata Motors’ ancillaries have turned out to be a big boon for the auto major.

Tata Motors has established its manufacturing facility for the Ace truck with an investment of Rs 1,000 crore. This has helped nearly 75 ancillaries to set shop. Nearly 63 ancillaries have been given industrial plots.

The Tata Motors ancillaries would be setting up their units at Pantnagar with a total investment of over Rs 900 crore at the mammoth 1,000-acre plot where the company is setting up its Ace unit.

The coming up of big ancillaries of Tatas has also goaded other auto majors like Bajaj Auto and Ashok Leyland to set up shop at Pantnagar.

Officials say they keep getting inquiries from various auto companies about the availability of industrial plots at Pantnagar.

Among the top ancillaries which are setting up new units, RSB Transmission is investing Rs 65 crore for its facility at Pantnagar. Bajaj Motors Ltd is setting up its unit with an investment of Rs 35 crore, Delphi TVS Diesel System with Rs 38 crore and New Allenberst Works Ltd with Rs 47 crore. Rojee-Tasha tops the chart with an investment of Rs 89 crore.

According to the State Infrastructure and Industrial Development Corporation of Uttarkhand Limited (SIDCUL), the state government enterprise, the 63 ancillaries of Tata Motors have provided employment to 7,199 persons.

Ashok Leyland, the flagship company of Hinduja Brothers, is doubling its investment to Rs 2,000 crore. The company would be manufacturing 40,000 vehicles per year. The Pantnagar industrial estate has also attracted an investment of Rs 500-600 crore from Bajaj Auto, which would establish a manufacturing unit for producing motorbikes.

In Haridwar industrial estate, another auto giant Hero Honda, which has set a new manufacturing facility with an investment of Rs 600 crore, has also attracted nearly eight ancillaries. All the eight ancillaries would together invest around Rs 320 crore.

Sudhir Nautiyal, additional director, department of industries, Uttarakhand, says: “It’s an ancillary deluge in Uttarakhand. I think other auto companies can also take benefit of the tax holiday scheme as well as of the these ancillaries.”