An additional investment of Rs. 150 crore envisaged
HARIDWAR: Hero Honda will invest an additional Rs. 150 crore in the current fiscal to scale up the capacity of its facility here that was inaugurated on Tuesday.
The plant would have an initial installed capacity of half a million bikes annually and the company would increase it to one million units by 2008.
The company has so far invested Rs. 450 crore in the plant. It had last year announced that along with its ancillaries, a total investment of Rs. 1,900 crore would be made in the project, which would have an overall production of 1.5 million units by 2010.
Hero Honda had completed the construction of the plant last year but delayed the operations to avail itself of the full ten-year tax holiday from the Uttarakhand Government.
The new plant would now enjoy tax holidays, which include zero excise duty for ten years, no income-tax for first five years and 30 per cent rebate in the following five years. “The fiscal incentives will impact the overall bottom-line of the company positively,” Hero Honda Motors Managing Director Pawan Munjal said here. — PTI