Andhra Pradesh IT Minister Nara Lokesh at the inauguration of the Ashok Leyland bus manufacturing plant. (Supplied)
A stalled Ashok Leyland manufacturing plant in Andhra Pradesh has been revived following sustained efforts by the state’s Minister for Information Technology, Electronics, and Communications, Nara Lokesh.
The breakthrough came after a key meeting in December 2024 in Hyderabad between Lokesh and the Hinduja family, which owns Ashok Leyland.
The discussion led to the revival of a state-of-the-art bus manufacturing facility near Vijayawada.
On 19 March, Nara Lokesh formally inaugurated the plant, located about 40 kilometres from Vijayawada.
Spanning 75 acres, the facility is designed to produce 4,800 buses annually.
It includes Nalanda, a modern learning centre, and an advanced service training centre.
The plant will manufacture Ashok Leyland’s full range of diesel buses, as well as electric buses under its subsidiary, Switch Mobility.
The revival of the project marks a major milestone in Andhra Pradesh’s industrial growth and signals fresh investment opportunities from the Hinduja Group, boosting the state’s economic prospects.
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Reviving a stalled project
The project was first announced in 2018, when the Hinduja Group, a key investor in the state, proposed the establishment of the facility.
The foundation stone was laid by the then Chief Minister, N Chandrababu Naidu, on 31 March 2018. However, progress stalled following a change in government in 2019.
The project gained new momentum in June 2024, when the Telugu Desam Party-led National Democratic Alliance returned to power.
Lokesh, who also chairs the cabinet committee on job creation, took the lead in reviving the stalled plans.
On 22 December 2024, he hosted the Hinduja family for a breakfast meeting at his Hyderabad residence to reaffirm the government’s commitment.
Key attendees included Ashok Hinduja, Chairman of Hinduja Group India, and Shom Ashok Hinduja, President of Alternative Energy and Sustainability.
Soon after, a task force was formed to address remaining land and local issues. Within three months, all obstacles were cleared, allowing the project to proceed.
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Reigniting investor confidence
During the meeting, Lokesh stressed the growing demand for electric buses across India and presented Andhra Pradesh as an ideal investment destination.
He also outlined the state’s plans to develop 160 gigawatts of renewable energy capacity over the next five years. His pitch, backed by a clear vision and problem-solving approach, reignited interest from the Hinduja Group.
Speaking at the inauguration, Ashok Hinduja said, “The Hinduja Group has enjoyed a long and productive relationship with Andhra Pradesh since the days of undivided Andhra under visionary leaders like NT Rama Rao and Chandrababu Naidu, the architect of India’s first technology-driven state.
“We look forward to expanding our investments in the new Andhra Pradesh across sectors such as power, mobility, manufacturing, and banking, financial services and insurance (BFSI). The state’s rich pool of human capital, particularly in emerging high-tech and digitally driven enterprises, coupled with its dynamism, makes us highly optimistic about investing further here.”
(Edited by Dese Gowda)
