According to sources, the Hinduja Group company would set up base at a 175-acre plant in the Pantnagar area of the state, which offers excise and income tax breaks to investors.
The decks have been cleared and the company would be handed over the land shortly, the sources said. The company would manufacture commercial vehicles at the plant and the actual roll-out could take about 1-2 years, they added.
Apart from Ashok Leyland, other automobile companies that have set up units in the state include Tata Motors, Mahindra and Mahindra, Bajaj Auto and Hero Honda.
When contacted, a spokesperson for the company did not confirm the news. Ashok Leyland, currently has six manufacturing plants - the main plant being at Ennore near Chennai, three plants at Hosur and assembly plants at Alwar and Bhandara.
The total covered space at these six plants exceeds 4,50,000 sq m and they employ over 11,500 personnel.