New Delhi/Ludhiana: Punjab Chief Minister Bhagwant Mann on Monday laid the foundation stone for a ₹1,116 crore forging and machining unit in Ludhiana, being established by Vardhman Special Steels in partnership with Japan’s Aichi Steel.
The Chief Minister described the project as a major boost to Punjab’s industrial growth, advanced manufacturing capabilities and employment generation. The plant will manufacture high-value automobile components for both domestic and international markets.
The project is expected to create direct employment for more than 500 young people, while future expansion by the Vardhman-Aichi venture could generate employment opportunities for another 2,000 people, according to Mann.
₹1,116 Crore Investment to Strengthen Punjab’s Automobile Manufacturing Sector
The forging and machining unit represents a major investment in Punjab’s industrial sector.
According to Chief Minister Bhagwant Mann, the investment was initially proposed at ₹500 crore but was later increased to ₹1,116 crore after the companies witnessed what he described as Punjab’s conducive industrial environment.
The plant will focus on manufacturing high-value automobile components for markets in India and overseas.
The project is expected to supply components to markets across:
- India
- Europe
- ASEAN countries
- Africa
- Mexico
Mann said the project would help Punjab move beyond the production of special steel towards the manufacturing of precision-engineered finished components.
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Advanced Japanese Forging Technology to Come to Punjab
The project will bring advanced Japanese forging technology to Punjab, strengthening the state’s capabilities in engineering and advanced manufacturing.
Chief Minister Mann said the initiative would further consolidate Ludhiana’s position as a major centre for engineering, automobile parts and advanced manufacturing.
He also highlighted the confidence shown by international companies in Punjab’s skilled workforce, work culture and industrial strength.
The Chief Minister described the project as the beginning of a new phase for Punjab’s industrial sector, with the Vardhman-Aichi partnership expected to contribute to the state’s manufacturing ecosystem.
Project Expected to Generate More Than 500 Direct Jobs
Employment generation is one of the key benefits expected from the new unit.
The project is expected to provide:
- More than 500 direct jobs for young people.
- Potential for another 2,000 jobs through future expansion of the Vardhman-Aichi venture.
- New opportunities in advanced manufacturing and automobile component production.
- Greater demand for skilled workers in engineering and precision manufacturing.
The project is therefore expected to contribute to both industrial development and employment generation in Punjab.
Bhagwant Mann Recalls 2025 Japan Visit
Chief Minister Bhagwant Mann recalled his visit to Japan in December 2025, when he met the leadership of Aichi Steel in Nagoya.
According to Mann, Aichi Steel subsequently signed an MoU with Vardhman to explore the project.
He said that within a few months, the MoU had progressed into an actual investment project.
Mann described the development as an example of translating government policy into practical investment and turning commitments into tangible projects.
Aichi Steel is described as a respected Japanese company and an important supplier to the Toyota Group.
Punjab’s Industrial Policy Focuses on Advanced Manufacturing
Mann highlighted the Punjab Industrial and Business Development Policy 2026, which provides support through 24 sectoral policies.
The policy focuses on promoting:
- Advanced manufacturing
- Exports
- Technology
- Employment generation
- Sustainable industrial growth
The Chief Minister said the policy framework is aimed at creating a favourable environment for both domestic and international investment in the state.
Invest Punjab Provides Single-Point Support to Investors
Chief Minister Mann said Punjab has established a system based on one office, one portal, single window, single pen and single-point responsibility.
Under the Invest Punjab system, investors are provided with a single point of contact covering various stages of their projects.
These include:
- Initial discussions
- Government approvals
- Construction
- Production
- Future expansion
Mann said the system is intended to make it easier for investors to navigate the state’s industrial and administrative processes.
He also claimed that Punjab has attracted investments worth around ₹1.78 lakh crore, with the potential to generate employment for nearly six lakh people.
CM Highlights Revival of Punjab’s Industrial Confidence
Mann said his government had inherited a situation in which industries were leaving Punjab due to what he described as an environment of extortion and an informal “share system” under previous governments.
He said sustained efforts by the current government had helped restore investor confidence and positioned Punjab as a frontrunner in industrial development.
The Chief Minister presented the Vardhman-Aichi project as an example of growing confidence among international companies in Punjab’s industrial ecosystem.
Vardhman Group Inaugurates ₹5 Crore Academic Block in Lohara
Earlier, Chief Minister Bhagwant Mann inaugurated a new academic block at Government Primary School, Lohara, constructed at a cost of ₹5 crore by Vardhman Textiles Group.
The new academic block includes:
- 18 classrooms for students.
- Furniture for the classrooms.
- Three rooms for teaching staff.
Mann said his government has been focusing on strengthening government schools, modernising educational infrastructure and investing in teacher training.
CM Says Punjab Is a Top Performer in School Education
Speaking at the inauguration, Mann said the state’s sustained education reforms had helped transform Punjab into the country’s top performer in school education.
He pointed to the performance of government school students in competitive examinations as an indication of the impact of the reforms.
He specifically mentioned the success of students in examinations such as:
- NEET (National Eligibility cum Entrance Test)
- JEE (Joint Entrance Examination)
- Punjab State Talent Search Examination (PSTSE)
The Chief Minister said the performance of government school students reflects the broader impact of investments in education and school infrastructure.
Vardhman-Aichi Project Marks New Phase for Punjab Industry
The foundation of the ₹1,116 crore forging and machining unit in Ludhiana marks a significant development for Punjab’s industrial and manufacturing ecosystem.
With advanced Japanese technology, production of high-value automobile components and potential for thousands of direct and future employment opportunities, the project is expected to strengthen Ludhiana’s role in engineering, automobile components and advanced manufacturing.
At the same time, the investment reflects the Punjab government’s stated focus on attracting global companies, promoting advanced manufacturing and creating new employment opportunities through its industrial policy framework.
