Hyderabad: Hero MotoCorp on Tuesday entered into a memorandum of understanding (MoU) with the Andhra Pradesh government for setting up a two-wheeler manufacturing plant in Chittoor district.
Under the pact, the Delhi-based two-wheeler maker will invest Rs 1,600 crore on the main plant at Satyaveedu that will produce 1.8 million two wheelers in a phased manner.
Another Rs 1,500 crore will be invested on ancillary units, according to Hero general manager (corporate) Rakesh Vashisht.
The state government has allotted 600 acres of land to Hero for the plant and the allotment letter was handed over to Vashisht by Industries Principal Secretary J S V Prasad in the presence of Chief Minister N Chandrababu Naidu, Union Ministers P Ashok Gajapathi Raju (Civil Aviation) and Piyush Goyal (Power) and others in Hyderabad on Tuesday.
The Hero plant, the first major industrial unit to be announced in the residuary state, is expected to provide direct employment to 3,000 people and indirect employment to another 6,000.
Meanwhile, the Chief Minister handed over a provisional letter of allotment for 1,103 acres of land to DRDO for setting up a unit at SR Puram mandal, Chittoor district.
Details of the project were not announced but Mr Naidu said the premier defence organisation would invest Rs 600 crore in the project.
A provisional letter of allotment was also handed over to Society for Applied Microwave Electromagnetic Engineering and Research (Sameer), a government entity, for 13 acres at Gambheeram village in Visakhapatnam district.
Sameer will invest Rs 80 crore in the project, details of which were also not specified.
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