Dharwad loses out to Chittoor on location of Hero MotoCorp plant

Despite its initial interest, company signed MoU with A.P. govt.

September 17, 2014 01:00 am | Updated April 20, 2016 05:22 am IST - HUBLI

The decision of two-wheeler manufacturer Hero MotoCorp to go to Andhra Pradesh has come as a big blow to Hubli-Dharwad as it was a location the company had initially considered for its first plant in south India.

Disappointed by the development, Aravind Bellad, BJP MLA from Dharwad, said Dharwad had lost a great opportunity for industrial development.

It also meant loss of thousands of jobs, he added.

‘Indifference’

Meanwhile, industrialists in the region, who did not want to be named, attributed the loss to “indifference” and long delays in clearance of files by the State government. Official sources said the State government took nearly 13 months to give its response to the company’s proposal.

Mr. Bellad pointed out that the issue was even raised in the State Assembly and Minister of State for Food and Civil Supplies and district-in-charge for Dharwad Dinesh Gundu Rao had clarified that the government was committed to facilitating investment by Hero Motocorp in Dharwad. He had said that the Chief Minister would take a decision on the tax concessions and incentives soon. Subsequently, certain concessions were offered, but it “proved too little, too late” said an industrialist.

More than the attempts of the Karnataka government not yielding the desired results, it was the opportunity lost to host a major investment that seems to weigh heavily on the minds of the people in the district.

Rs. 1,600 cr. investment

On Tuesday, the company entered into a memorandum of understanding (MoU) with the Andhra Pradesh government to set up a plant in Chittoor.

It is expected to invest Rs.1,600 crore.

Perhaps, as an indication of things to come, the Bangalore Chamber of Industry and Commerce (BCIC) recently asked the State government to benchmark incentives offered against those provided by other States to ensure it does not lose out on new projects.

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