Escorts Kubota cancels a new unit at Ghiloth in Rajasthan

21 Jun 2024 CW Team

Escorts Kubota Ltd. announced that it has decided to withdraw its plan to establish a new manufacturing plant at Ghiloth in Rajasthan. The company cited the reason for this decision as its inability to fulfil all the essential requirements necessary for a large-scale project. Escorts Kubota Ltd., which has planned an investment of up to Rs 45 billion over the next three to four years for the establishment of a new manufacturing plant, stated that it remains in discussions with other states, including Rajasthan, to explore alternative options. The company had submitted an Expression of Interest (EOI) to Rajasthan State Industrial Development and Investment Corporation (RIICO) for the proposed acquisition of land in Ghiloth, Rajasthan. This was subject to obtaining the necessary approvals and clearances for setting up an integrated greenfield manufacturing facility to expand its existing capacities, as mentioned in its regulatory filing. According to the regulatory filing, "After a detailed assessment of the location, the company has concluded that the site does not meet all the key requirements necessary for the planned large-scale project. Consequently, the company has withdrawn the aforementioned expression of interest." One of the primary reasons for withdrawing the Expression of Interest, as stated in the filing, was the state government's inability to guarantee sufficient industrial water supply for the project. Nonetheless, Escorts Kubota Ltd. reaffirmed its commitment to establishing an integrated greenfield manufacturing facility in accordance with its Mid-Term Business Plan (MTBP). The company expressed its ongoing exploration of alternative options with various states, including Rajasthan.

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