Indian Commercial vehicle manufacturer Ashok Leyland is evaluating the establishment of an electric vehicle battery manufacturing plant as part of its industrial expansion in Bhandara, Maharashtra.

The project could involve an investment of between Rs. 100 billion and Rs. 150 billion (US$ 1.1 billion-1.5 billion), according to a report by a local daily citing Union Minister for Road Transport and Highways Nitin Gadkari.

Speaking at an event in Nagpur on 20th September, where he inaugurated a 40-seater electric bus donated by Ashok Leyland for senior citizens' pilgrimage services, Gadkari discussed the investment potential of the Vidarbha region. According to the report, the minister stated that if the automaker proceeds with the project, it would increase industrial capital expenditure in the region.

"If they go ahead, then it could bring in investments between Rs. 100 billion to Rs. 150 billion," Gadkari said, as quoted by the local daily.

Gadkari referred to Vidarbha as a potential manufacturing and distribution base and cited factors including the availability of industrial labour, multi-modal logistics networks and an operational dry port that enables direct freight exports. He also noted that Mahindra has commenced work on a Rs. 150 billion manufacturing unit in the region.

"There is a very friendly atmosphere here and Vidarbha is a fantastic place for investments," Gadkari reportedly stated.

Gadkari urged manufacturers to base their corporate and operational functions in the district and said, "You must make Nagpur your headquarters. We will fully cooperate with you."