BSY tries to drive in Hero Honda investment

The company, which is scouting for a location to set up its fourth plant, has promised to invest in Karnataka if the state government provides all help, including land and other related infrastructure, without much hassles.

Company chairman Brij Mohan Lal and managing director Pawan Kant Munjal held a breakfast meeting with Karnataka Chief Minister B S Yeddyurappa on Tuesday  and expressed their keenness to invest in the State. 

Hero Honda, which proposes to make an investment of Rs 2,000 crore has sought 200 acres for the plant, 200 acres for ancillary units and 100 acres for a township.  If the project materialises, around 10,000 jobs will be created in the plant as well as ancillary units.

Land available
The chief minister explained to the company delegation that 500 acres was readily available near the Hubli airport. Currently, the land is with the Karnataka Industrial Area Development Board, a government nodal agency to provide infrastructure facilities to industry sector. 

The chief minister also informed them about another site at Mammigatti near Hubli where the government has already issued notification to acquire 100 acres.

The company, which once scouted for suitable sites in Karnataka a few weeks back, again promised to send another team to conduct techno-feasibility study, sources in the State government told Deccan Herald here. 

During the discussion, the company officials also raised the issue of getting high incentives in Uttarakhand, where they have one manufacturing unit, and asked whether the Karnataka government can extend similar benefits.

It is learnt that the chief minister has promised that it would be studied by his officials.  
Currently, the company has three plants — two in Haryana and one in Uttarakhand — with the combined production capacity of over five million units per annum.