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Motorcycle manufacturer Hero MotoCorp Limited today announced it would set up an ultra-modern manufacturing facility with a capacity to produce 1.8 million units annually in Andhra Pradesh.
The company signed an MoU with the state government in the presence of chief minister N Chandrababu Naidu, who marked his 100th day in office with a half-a-dozen agreements from different sectors. Union power minister Piyush Goyal was also present on the occasion.
Vikram Kasbekar, head of operations and supply chain at Hero MotoCorp, said the company would invest Rs 1,600 crore in the mother plant while various ancillaries will bring in another Rs 1,500 crore to set up their base at the plant.
“This is going to be a state-of-the-art motorcycle plant and a very ultra-modern energy efficient facility. We will set up the plant in phases with a capacity to produce 1.8 million units,” Kasbekar said while stating that the project would provide direct employment to 3,000 people.
The Andhra Pradesh government has offered 600 acres of land to the company at Madannapadu village in Satyavedu mandal of Chittoor district near the Tamil Nadu borders. The government has extended a whole set of incentives with the major ones being waiver of value-added tax (VAT) and land at a nominal cost.
Naidu said Hero MotoCorp's decision to locate the plant in AP was very quick and he expected them to build the plant with a similar pace. Officials said the company was willing to go for ground breaking for the plant next month.
