Hero Motocorp, the country’s two wheeler biggie had been in talks with Karnataka and Andra Pradesh for production plant set up for entire southern part of India. The proposal of free land from Andra Pradesh was indeed too lucrative for the India’s largest bikemaker. The location offered is in Satyavedu mandal in Chitoor district of Andra Pradesh. Speaking more on the occasion, Siddaramaiah, Karnataka’s Chief Minister said, “Free land offered by the Andhra Pradesh government was the main reason the two-wheeler major decided to set up its mega plant in the neighbouring state.”
Reportedly, the Karnataka government had offered land at Mammigati near Belgaum for 99 years lease at Rs 32 lakh per acre. Hero Motocorps upcoming plant at finalized Satyavedu mandal location is spread across 500 acre plot and the company shall invest about Rs. 1700 crores for its development. Based on plans of producing about 1.8 millon units annually, the new plant may generate about 3,000 direct employment opportunities and many more indirect job opportunities.
Speaking more on the situation Siddaramaiah said, “The government offered maximum concessions in the form of tax holidays, excise duty exemption, concessions in entry tax and interest-free loan of Central Sales Tax (CST) to the company. But we cannot give free land. The state government did its best.” Adding further he said, “AP No Threat to Karnataka. Karnataka and Bangalore are the most preferred destinations for investors as the city has abundant skilled manpower and the most conducive law and order situation. No state can match the advantage enjoyed by Bangalore in attracting investors.”
