Defence Minister Rajnath Singh announced that Uttar Pradesh has emerged as a major defence manufacturing hub, with investments exceeding ₹34,000 crore made across six nodes of the state's defence corridor. Speaking at the inauguration of Ashok Leyland 's electric vehicle manufacturing plant, Singh emphasized India's progress towards self-reliance in weapons and ammunition production.

Defence Corridor Investment Overview

The defence corridor spans across six strategic locations, attracting significant industrial investment and establishing manufacturing capabilities for critical defence equipment.

Singh noted that India is no longer dependent on other countries for weapons, missiles or defence equipment, with a significant portion now being manufactured domestically from Uttar Pradesh. The event was attended by Uttar Pradesh Chief Minister Yogi Adityanath and Union Heavy Industries Minister HD Kumaraswamy.

Ashok Leyland Electric Vehicle Plant

The newly inaugurated electric vehicle manufacturing facility represents a significant milestone in the state's industrial development, completed well ahead of schedule.

Singh highlighted that the facility will support the state's target of reaching a ₹36 lakh crore gross state domestic product (GSDP) and contribute to employment generation across the region.

Policy Framework and Industrial Growth

The Defence Minister referenced the Uttar Pradesh Aerospace and Defence Unit and Employment Promotion Policy, designed to position the state as a major centre for large-scale defence production. The policy aims to attract massive investment over the next five years and create employment opportunities for lakhs of youth, ensuring local job creation without forcing migration to other states.

Singh credited Chief Minister Yogi Adityanath for facilitating land allotment and ensuring timely project clearances, stating that the "double-engine" government has accelerated development through clear and industry-friendly policies. He noted that improved law and order has created a stable environment for investors and provided secure livelihoods for citizens.

Strategic Manufacturing Capabilities

The defence corridor has established critical manufacturing capabilities, including the BrahMos Aerospace factory in Lucknow that produces BrahMos missiles. Singh mentioned that the effectiveness of these missiles was demonstrated during Operation Sindoor, showcasing the success of domestic defence production.

Singh expressed confidence that Uttar Pradesh will help India become a developed nation by 2047 and achieve its own goal of becoming a one-trillion-dollar economy by 2030. He praised Prime Minister Narendra Modi's leadership, noting that India's global stature has risen and its voice is now respected on international platforms.

Ashok Leyland shares rallied 2.66% to ₹189.25 in trading following the inauguration of a new electric vehicle manufacturing plant in Lucknow, marking the company's strategic push into the electric mobility sector. The stock has demonstrated strong performance over the past year, gaining 76.48% in the last 12 months.

New Manufacturing Facility Details

The integrated plant has been established in the Sarojini Nagar Extension-1 industrial area, utilizing the site previously occupied by Scooters India. The facility is designed for comprehensive chassis and bus manufacturing operations.

Production Capabilities and Market Focus

The unit will manufacture advanced commercial vehicles powered by multiple technologies including internal combustion engines (ICE), electric drivetrains (EVs), and alternative fuel technologies. The facility is positioned to serve both domestic and international markets, reflecting the company's broader expansion strategy.

High-Profile Inauguration Ceremony

The plant inauguration was attended by prominent government officials, demonstrating strong institutional support for the project. Defence Minister Rajnath Singh and Uttar Pradesh Chief Minister Yogi Adityanath were present at the ceremony, along with Union Ministers Nitin Gadkari and H.D. Kumaraswamy.

Dheeraj Hinduja emphasized the significance of the milestone during the ceremony, stating this represents the company's first manufacturing facility in Uttar Pradesh. He highlighted the project's rapid execution, completed in just 14 months, and noted that progressive state policies have encouraged consideration of bringing other Hinduja Group businesses to the region.

Strong Analyst Support

The stock enjoys robust analyst backing, with comprehensive coverage from the investment community.

Economic Impact and Future Outlook

Industrial Development Minister Nand Gopal Gupta 'Nandi' stated that the new plant will enhance the state's automobile manufacturing strength while positioning it for future mobility developments. The facility is expected to generate employment opportunities and strengthen the MSME ecosystem in the region, contributing to local economic development.