A Cabinet subcommittee, headed by Chief Minister Siddaramaiah, on Thursday agreed to provide incentives and concessions to three major companies, including the Hero Motocorp and Tata Motors, to set up their units in the State.
Revenue Minister V. Srinivas Prasad, who is a member of the subcommittee, told presspersons here that the main intention of the government was to retain these big investors — who have already entered into a pact with the government — in the wake of reports that Andhra Pradesh was also trying to woo them.
Pointing out that these industries were to come up in places other than Bangalore, he said such a process would help provide impetus to development of those backward areas.
Proposal clearedReferring to the Hero Motocorp’s proposal, which was cleared by the State High-level Investment Clearance Committee in March, he said the company would set up its two-wheeler manufacturing unit at Mummigatti, near Dharwad.
Plans afootThe company has plans to manufacture 1.8 million two-wheelers a year with a proposed investment of about Rs.1,450 crore.
The Chief Minister recently told the Legislative Assembly that the government was keen to see that this plant came up in the State as it would provide employment to 25,000 people.
He said the government had decided to provide incentives and concessions in value added tax , entry tax and stamps and registration charges. Such concessions had also been provided to the Tata Motors’s proposed unit at the Belur industrial area, near Dharwad, which would manufacture luxury buses and JBF Petrochemicals’ proposed unit in Mangalore, he said.
Expansion unitSimilarly, the government had taken a stand of allowing only an expansion unit of Dalmiya Cements as per an agreement reached with the company instead of its proposal to set up a new unit, he said.
