Karnataka CM: ‘Free land’ tempted Hero MotoCorp to opt for Andhra Pradesh
In a recent interaction with reporters at the Karnataka State Secretariat, Chief Minister Siddaramaiah said that Hero MotoCorp opted for Andhra Pradesh instead of Karnataka for its planned Rs 1,115-crore investment because the company was apparently enticed by the ‘free land’ incentive offered by Andhra Pradesh.
Siddaramaiah – who is also the Industry and Commerce Minister of Karnataka – told the reports that there was no laxity on the part of the Karnataka government in accepting Hero MotoCorp’s investment proposal.
According to the details shared by Siddaramaiah with the reporters, the Karnataka government had offered a number of concessions to Hero MotoCorp. These incentives included “maximum concessions in the form of tax holidays, excise duty exemption, concessions in entry tax, and interest-free loan of Central Sales Tax (CST).”
However, Siddaramaiah also explained that the Karnataka government could not give ‘free land’ to Hero MotoCorp because such a move would have prompted other companies also to seek ‘free land’ from the government.
Revealing that the Karnataka government had offered 500-acre land to Hero MotoCorp, on 99-year lease, at Mammigatti industrial area in Dharwad, Siddaramaiah – commenting on Hero MotoCorp’s decision to opt for Andhra Pradesh – said: “We cannot compete with the newly carved State.”
Source – The Hindu Business Line
concessions in entry tax, excise duty exemption, Hero MotoCorp, Industrial area in Dharwad, Industry and Commerce Minister of Karnataka, interest-free loan, Karnataka government, Siddaramaiah, tax holidays
