Things seem moving in a positive direction for Andhra Pradesh with regard to the Peugeot car project.
A senior government official said the company’s India head had visited the state last month seeking clarifications on last mile issues related to facilitation of the manufacturing plant near Sri City, a private special economic zone (SEZ) and industrial park, which is in close proximity to Chennai.
The French car maker is expected to formally announce the location of the project anytime after June 15.
The locational advantage of the land offered to the company by the state government, apart from Sri City management’s offer to provide land and other infrastructure support required to set up an ancillary base at its premises, is expected to work in favour of the state.
This apart, chief minister N Kiran Kumar Reddy has offered an attractive package of incentives, including a 21-year-long VAT waiver, to the company in addition to setting up of a task force with senior government officials to address all the issues aimed at facilitating the project while taking care of all the basic requirements needed for an international project of a considerable scale.
However, the officials involved in negotiations with the company are still guarded saying things may or may not unfold as they expect as it also depends on what the Tamil Nadu offers. The visit of Peugeot chairman Phillipe Varin to both the states last March dropped enough indications that the company was keen on choosing one of the two states to establish its $1 billion project.
