Escorts Construction Equipment the fully owned equipment arm of the Escorts Group is in talks with the governments of Gujarat and Madhya Pradesh to acquire land for a manufacturing unit.

Escorts will manufacture cranes, backhoe loaders and excavators at the proposed plant, which will have an installed capacity of 50,000 units. The company refused to share investment details but industry sources said Escorts will invest over INR 5,000 crore.

Madhya Pradesh is currently the frontrunner for the proposed plant, a company executive said on condition of anonymity. Escorts has zeroed in on the two states because of logistical convenience, huge vendor base and availability of huge land parcel.

Mr Rajesh Sharma vice president, sales and marketing of ECEL said that "We will require 40 acres of land and are currently negotiating with state governments. The decision will depend on the facilities the state governments offer.”

Gujarat and Madhya Pradesh are fast emerging as the favored investment destination for corporates because of their tax regime and cheap labour. Gujarat has already attracted investments from domestic and foreign automakers.

(Sourced from ET)