Hero Motorcorp was offered big incentives yet they pulled out of Karnataka

Apparently Karnataka government was ready to offer 100 per cent GVAT as interest free loan

Bengaluru: Contrary to popular perception that two-wheeler giant Hero Moto Corporation Limited departed from the state due to improper treatment meted out to them in terms of granting special incentives and concessions to set up base in Dharwad, the state government had done its best to fulfill 14 demands, said industry department sources.

Speaking to Deccan Chronicle, a senior official in the industry department said, "We had agreed to almost every condition laid out by the two-wheeler giant as early as May itself and it was conveyed to them in time. However, they opted to shift to Seemandhra without citing any ‘reason’."

The state was ready to offer 100 per cent GVAT as interest free loan with a ceiling limit of 200 per cent and repayment starting from the 11th year. Even the state granted interest free loan to an extent of 95 per cent of the CST paid during the initial five years from the date of commencement of commercial production or till the GST was introduced.

The source added that though the previous government had initiated the spade work as early as 2011 itself to bring Hero group to establish its base here, but the HMCL itself had not submitted its detailed proposal till October 2013. "In October 2013, the proposal was discussed in detail and based on their proposal, the state government approved it in March 2014.

Subsequently, approval to provide special incentives and concessions was passed through a government order on May 2014. Therefore, there was no delay from the state government's side," the official claimed.

Special concessions and incentives offered to HMCL include allotment of 500 acres of land in one go at Mammalgatti Industrial Area in Dharwad, CST at the rate of 0.1% for 5 years or GST regime and 100% GVAT as interest free loan for 15 years.

( Source : dc correspondent )
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