Ashok Leyland to set up unit in Uttaranchal

New Delhi, Oct 31: Ashok Leyland Ltd today announced its plans to set up a vehicle manufacturing unit in Uttaranchal at an investment of over Rs 1,000 crore to produce 25,000 vehicles annually.

The capacity is intended to be stepped up to 40,000 units eventually.

''This unit will strengthen our presence in northern India which already contributes nearly a quarter of our sales. The development of Uttaranchal as an auto hub made our selection easier,'' company Managing Director R Seshasayee said.

About 200 acres of land has been identified in Pantnagar for the unit, which will give employment to 3,000 people, the company informed BSE.

The unit will enjoy excise duty and income tax exemption for the period of five to ten years.

UNI