Karnataka Showers Sops On Hero Motors To Pocket It’s 2 Wheeler Plant Project

A determined Karnataka Govt. has announced many sops to Hero Motors to entice it to set up it’s 6th plant in the state. Earlier, the motor company was actively considering Telangana for the location after it’s initial talks with Karnataka enter a deadlock, over setting up a plant in Dharwad. Then, Hero asked Karnataka for 500 acres of land as well as additional land for for units to house its 40 vendors, as we reported. Karnataka then was reluctant but now has accepted that along with a host of other tax incentives, making an irresistible offer to Hero. Hero Motors is expected to accept the offer. Karnataka’s latest effort came after it’s CM announced on 23 July that the state wont lose the project ‘at any cost’.

Hero proposes to invest up to Rs 2,000 crore to put up the bike manufacturing plant at Mammighatti village in Dharwad district with a long-term potential for 10,000 jobs. The facility will have an annual production capacity of 1.8 million units. The proposal includes a few ancillary units. 

After visiting Telangana and visiting a host of sites for 2 days, the Hero Motocorp reprtedly preferred the land offered in Ibrahimpatnam by the State Government but Karnataka moved quickly and revisited the offer it made earlier and now came up with these proposals. The deal maybe announced in few days by hero Motocorp.