The Yamuna Expressway Industrial Development Authority (YEIDA) has allotted 190 acres of land to agri-machinery and construction equipment maker Escorts Kubota to set up a tractor unit in along the Yamuna Expressway.
The Authority has issued a Letter of Intent (LoI) to the tractor maker, with officials citing a planned investment of Rs 4,500 crore for the plant, along with other development on the allotted land.
YEIDA officials said the construction of the facility is part of the MoU signed by Escorts Kubota on August last year with the Uttar Pradesh government, committing investment and employment in the region. Escorts, an Indian company, had collaborated with Japanese giant Kubota in 2019 to develop value-oriented tractors that cater to farming requirements in India and overseas market.
YEIDA officials have said the Yamuna Expressway region has emerged as an industrial and real estate hotspot because of the upcoming Noida International Airport in Jewar. The proposed investment underscores the rising investor confidence in Uttar Pradesh’s industrial policies and transparent land allotment framework, officials added.
Escorts Kubota may leverage the opportunity by establishing a strategic hub for manufacturing tractors, engines, other farm and construction equipment to serve Indian as well as global market, YEIDA officials said.
“The project aims at enhancing overall manufacturing capability in terms of quality and cost by setting up a Greenfield manufacturing plant. In addition, it also plans to start shared services from India for Kubota's global Research and Development,” one Authority official said.
The official added that apart from Rs 4,500 crore investment for a tractor manufacturing unit, the company would also provide employment to 4,000 people in phased manner.
Escorts Kubota is planning to invest Rs 2,000 crore in first phase, in which tractor plant, commercial equipment plant and other facilities will be established. Phase-2 expansion will be subject to market demand and utilization of Phase 1 plant capacity, official said.
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