From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Sep 19: Leading two-wheeler manufacturer Hero MotoCorp Ltd, which had zeroed in on Dharwad in Karnataka for setting up its manufacturing unit, has driven off to Andhra Pradesh.

Hero MotoCorp Ltd had proposed to invest Rs 1,115 croreat Mammigatti industrial area of Dharwad.

However, the Karnataka Government had not offered free land and the company had to buy the land for its manufacturing plant.

With the neighbouring Andhra Pradesh offering 500 acres of land free of cost on a lease period of 99 years, Hero MotoCorp Ltd found the offer more attractive as the company would have to buy land at a cost of Rs 32 lakh per acre.

Confirming the decision of Hero MotoCorp Ltd to abandon its proposal to set up the unit in Dharwad in favour of Andhra Pradesh, Karnataka chief minister Siddaramaiah said the company took the decision it considered most attractive.

''We cannot be accused of any laxity,” he said pointing out that the State Government had offered the best of terms as per the State’s industrial policy.

The State government tried its best. But it was the support of the NarendraModi government at the Centre that helped Andhra Pradesh as the ruling Telugu Desam party is part of the NDA and that tilted the scale.

The Centre too offered a special package to Andhra Pradesh after the formation of Telangana as Andhra Pradesh would be deprived of Hyderbad, the Chief Minister said.

Hero MotoCorp had been offered less incentives compared to Honda Motor Cycles and Scooters Ltd, which had established its plant at Narasapura in Kolar.

Honda Motor Cycles and Scooters Ltd purchased lands 97 acres by paying Rs 47 lakh per acre in 2011, he said.

While Hero MotoCorp agreed to offer 70 per cent of total workforce to locals, Honda Motor Cycles and Scooters Ltd provided 80 per cent of jobs to local, Siddaramaiah said.

The State Government had offered water at Rs 35 per kilo litre for initial five years, interest free loan up to 95 per cent of CST paid in the first five years, 70 per cent of eligible gross VAT as interest free loan during initial 12 years, 100 per cent entry tax exemption on input components and raw materials for 10 years from the date of commencement of production, 100 per cent exemption on stamp duty for registration of land and loan documents, cent per cent exemption on electricity duty/tax for initial five years, the Chief Minister explained.