Two-wheeler major Hero MotoCorp deserted Karnataka as it was offered free land by the Andhra Pradesh Government, according to Chief Minister Siddaramaiah.
Speaking to presspersons here on Friday, Mr Siddaramaiah said Hero MotoCorp had proposed to invest Rs 1,115 crore and the government had offered 500 acres of land for a lease period of 99 years. The cost per acre of land was Rs 32 lakh at Mammigatti Industrial area in Dharwad.
“Our government offered maximum concessions in the form of tax holidays, excise duty exemption, concessions in entry tax, and stamp and registration charges to the company. But we cannot give free land to the company. Otherwise, later, other companies will also ask for free land. We cannot compete with AP”, said the Chief Minister.
Noting that Karnataka and Bangalore are destinations for investors from across the world as the city has available skills, a favourable law and order, he said “the company officials have not approached him seeking benefits.” The company officials had discussed the investment proposals with the Commerce and Industry department officials.
The Chief Minister, who holds the Industry and Commerce portfolio, said there was no delay in taking decisions by the Government. Hero MotoCorp’s proposal was approved in March 2014. Later, a Cabinet sub-committee headed by him had agreed to offer several incentives to the company, he said.
The State government did its best. But it was the support of the Centre that Andhra Pradesh enjoyed which made the difference. The Centre has offered a special package to Andhra Pradesh post the formation of Telangana, the Chief Minister said.
