Punjab sees rise in investment as ₹1,116 crore Vardhman-Aichi project breaks ground

Punjab Chief Minister Bhagwant Singh Mann on Monday laid the foundation stone for a ₹1,116 crore forging and machining plant being established by Vardhman Special Steels in collaboration with Japan's Aichi Steel, saying the investment reflects growing industry confidence in the state's manufacturing ecosystem and is expected to generate direct employment for over 500 people.

The chief minister said the investment proposal, initially planned at ₹500 crore, was expanded to ₹1,116 crore after the companies assessed Punjab's industrial environment. He added that a future expansion of the project could create jobs for another 2,000 people.

Project to boost advanced manufacturing and exports

Speaking at the event, Mann said the project represents a shift towards high-value manufacturing in Punjab. He said the facility will manufacture precision-engineered automobile components using advanced Japanese forging technology for domestic as well as international markets, including Europe, ASEAN countries, Africa and Mexico.

The chief minister recalled that during the Punjab government's visit to Japan in December 2025, officials met Aichi Steel executives in Nagoya, where the two companies signed an MoU to explore establishing a manufacturing facility in Punjab. He said the proposal has now materialised into a project with a planned investment of around ₹1,100 crore across two phases.

Mann said Vardhman has played an important role in Punjab's industrial growth for nearly four decades, while Aichi Steel is a key supplier to the Toyota Group. He described the partnership as one based on technology, trust and long-term collaboration.

According to the chief minister, the project will help Punjab move beyond manufacturing special steel to producing finished precision components, strengthening Ludhiana's position as a major engineering and automobile components hub.

CM cites policy reforms, investment pipeline

Highlighting the state's industrial policy, Mann said Punjab's Industrial and Business Development Policy 2026 includes 24 sector-specific policies aimed at promoting advanced manufacturing, exports, technology adoption and employment generation.

He said Invest Punjab functions as a single point of contact for investors through the state's "Single Window-Single Pen" system, while the Fast Track Punjab portal integrates more than 200 business services and nearly 50 regulatory approvals. Applications, he said, are processed within a maximum of 45 working days, with deemed approvals available wherever applicable.

Mann said Punjab has already attracted investment proposals worth around ₹1.78 lakh crore, with the potential to generate nearly six lakh jobs, which he described as evidence of increasing investor confidence.

Referring to the government's outreach in Japan, the chief minister said the visit was undertaken to attract investment, technology and global partnerships, adding that the Vardhman-Aichi project is among its major outcomes.

He also claimed Punjab's industrial climate has improved over the past four years, alleging that industries had previously moved out of the state because of an unfavourable business environment. He said the government has worked to restore investor confidence through transparent governance and industry-friendly policies.

The chief minister further said companies including Tata Steel, Nestlé, CLAAS, Freudenberg, Cargill, Verbio, Danone and Sanatan Textiles have either expanded or established operations in Punjab.

Reiterating the government's focus on employment generation, Mann said creating sustainable jobs for young people remains a priority and that attracting fresh industrial investment is central to that objective.