Punjab launches Rs 1,116 crore Vardhman-Aichi forging project in Ludhiana

Punjab chief minister Bhagwant Mann on Monday laid the foundation for a Rs 1,116 crore forging and machining unit in Ludhiana being set up by Vardhman Special Steels in partnership with Japan’s Aichi Steel.

Mann said the project would strengthen Punjab’s industrial growth while creating new employment opportunities in the state.

The chief minister said the project would generate direct employment for more than 500 youth. He also expressed confidence that future expansion by the Vardhman-Aichi venture could create jobs for another 2,000 people.

The facility will manufacture high-value automobile components for domestic and international markets.

“The investment, enhanced from the initially proposed Rs 500 crore to Rs 1,116 crore after the companies witnessed Punjab’s conducive industrial environment, reflects growing global confidence in the state’s pro-industry policies,” Mann told the gathering.

“The project marks the dawn of a new era for Punjab’s industrial sector. Vardhman is not only a leading industrial group but also an important part of Punjab’s growth story, having operated in the state for nearly four decades,” he added.

According to the chief minister, the project will bring advanced Japanese forging technology to Punjab and manufacture high-value automobile components for India as well as markets in Europe, ASEAN countries, Africa and Mexico.

He said Punjab would not only produce special steel but also manufacture precision-engineered finished components.

Mann said the project would further strengthen Ludhiana’s position as a major centre for engineering, automobile parts and advanced manufacturing.

Referring to Punjab’s industrial ecosystem, Mann said the investment reflected the confidence international companies have in the state’s skilled workforce, work culture and industrial strength.

He said the Punjab Industrial and Business Development Policy 2026 supports industry through 24 sectoral policies while promoting advanced manufacturing, exports, technology, employment and sustainable industrial growth.

“Punjab has established a unique system of one office, one portal, single window-single pen, and single-point responsibility. ‘Invest Punjab’ serves as the single point of contact for investors from the first discussion to approvals, construction, production and future expansion,” he stated.

Mann claimed Punjab has already attracted investments worth around Rs 1.78 lakh crore with the potential to generate employment for nearly six lakh people.

“We inherited a system where industries were fleeing Punjab because they were frustrated by the extortion and share system that prevailed under previous governments. Through sustained efforts, we have restored confidence and made Punjab a frontrunner in industrial development,” Mann added.