Rajnath Singh Says Petrol Vehicles Will Reduce as EVs Are the Future

Union Defence Minister Rajnath Singh emphasized that electric vehicles represent the future of transportation, predicting that reliance on petroleum-based vehicles would eventually shrink.

Rajnath Singh made the remarks while inaugurating the new EV production unit of Hinduja Group’s Ashok Leyland in Lucknow’s Sarojini Nagar neighborhood on Friday. Union Minister HD Kumaraswamy, Uttar Pradesh Chief Minister Yogi Adityanath, and Deputy Chief Minister Brajesh Pathak were also present at the ceremony.

The Lucknow MP asserted that Uttar Pradesh has emerged as a significant defense hub, claiming that investments totaling over Rs 34,000 crore have already been made across six nodes of the state’s defence corridor.

According to sources, the Lucknow plant that manufactures EV buses has received an investment of approximately Rs 252 crore.

Rajnath Singh described the facility as “a landmark for Uttar Pradesh’s industrial growth” and praised the Hinduja Group and Ashok Leyland for constructing the EV manufacturing unit in a record 18 months, much ahead of the expected timeframe of 60 months.

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“Reliance on petroleum-powered cars would eventually shrink. In this environment, the Ashok Leyland EV unit will have a transformative impact, considerably contributing to clean energy adoption and sophisticated manufacturing for both the state and the country,” he stated.

Rajnath Singh also stated

Singh also stated that “The facility would serve as a major hub for skill development, preparing large numbers of young people for gainful employment and higher incomes in the years ahead” .

“Rs 34,000 crore invested in defence corridor nodes.”

Addressing the audience, Singh stated that India is no longer reliant on other countries for weapons, missiles, or defense equipment because these are now produced locally, with a substantial amount coming from Uttar Pradesh.

Singh stated that the defense corridor, which spans Lucknow, Kanpur, Jhansi, Agra, Aligarh, and Chitrakoot, produces arms, ammunition, and fighter aircraft components, with major corporations establishing manufacturing facilities in the state.

“I have been told that investments worth around Rs 34,000 crore have been made in these defence corridor nodes,” explained the minister.

Singh, referring to the Uttar Pradesh Aerospace and Defence Unit and the Employment Promotion Policy, stated that the state is being developed as a key hub for large-scale defence industry.

Speaking at the event, Chief Minister Yogi Adityanath stated that the EV facility presently has an annual manufacturing capacity of 2,500 units, which would be increased to 5,000 units in phases. He stated that the manufacturing factory was created in accordance with the state’s FDI and Fortune 500 policy. Yogi stated that the project’s Memorandum of Understanding was signed in September 2023, with the Letter of Intent and land allotment process completed in January 2024.

The world-class manufacturing facility was operational in just 18 months, he continued. Yogi described the bus constructed at the new plant as a 17-18 seater vehicle priced around Rs 15 lakh and geared for school transit and intercity connectivity. He stated that the state’s Electric Vehicle Policy will help to encourage the manufacturing of such vehicles. Yogi also announced that the Hinduja Group will sign a Memorandum of Understanding with the Uttar Pradesh government to give skill development training to 10,000 youth annually at the facility.

“Over the last 8-9 years, the state has received investment bids totalling Rs 45 lakh crore. Groundbreaking ceremonies have already taken place for projects worth Rs 15 lakh crore, with another Rs 6 lakh crore set to begin next month. Yogi stated that projects worth an additional Rs 5 lakh crore are in the works and will soon begin construction in Uttar Pradesh.

The CM stated that the state presently contributes 9.5% of India’s GDP and that its Gross State Domestic Product (GSDP) is likely to reach Rs 36 lakh crore by the conclusion of the current fiscal year.

He stated that 55% of the country’s mobile phones and 60% of its electronic goods are manufactured in the state. He also stated: “Uttar Pradesh today is home to over 18,000 startups, supported by 76 incubators, seven Centres of Excellence, and eight unicorns.”

In 2024, Uttar Pradesh accounted for 19% of India’s entire electric car market. The state has also emerged as a key beneficiary of the FAME I and FAME II projects, with 700 electric buses already functioning in Uttar Pradesh,” Yogi stated.

During the event, Ashok Leyland Chairman Dheeraj Hinduja announced that this is the company’s first production unit in Uttar Pradesh. He stated that wherever an Ashok Leyland facility is created, the local community benefits directly, and a beneficial impact is expected throughout the state. He mentioned the company’s “Road to School” effort, which provides nourishment and educational support to over 25,000 pupils in the state’s government institutions.

According to Ashok Leyland, the Lucknow factory was planned with the future in mind. Electric vehicles will be manufactured in large numbers here using current manufacturing technologies and digital procedures.

Dheeraj Hinduja praised Chief Minister Yogi Adityanath, stating that the state has created a robust and reliable atmosphere for industrial development and investment.