Hero MotoCorp Limited has entered into an agreement with the Andhra Pradesh Government for setting up a Greenfield two-wheeler manufacturing plant in Chittoor district.
The company has been allotted a 600-acre site in Satyaveedu located adjacent to the Sri City multi-use project.
Hero is expected to invest about ₹1,600 crore on the project which will have capacity to produce up to 1.8 million units per annum in a phased manner.
He said that the plant will be developed in a phased manner and is aimed at addressing the Southern market.
The memorandum of understanding was signed between representatives of Hero MotoCorp and the State in the presence of Chief Minister N Chandrababu Naidu, Union Power Minister Piyush Goyal and Civil Aviation Minister P Ashok Gajapathi Raju.
Naidu described Hero’s decision to set up a plant in AP as a flagship project in the automotive sector, which will attract more investments.
Win-win situation Ravi Sanna Reddy, Managing Director of Sri City, told BusinessLine , “It is heartening to see the project coming up in the State, that too next to the Sri City. This will be a win-win situation for the State and Sri City as the company would be able to use its infrastructure to develop the new manufacturing unit.”
If the State is accorded special status, the manufacturing unit would be able to get special incentives, according to Government sources. The sources also hinted that the foundation stone could be laid by next month.