Andhra Pradesh Chief Minister N Chandrababu Naidu today laid the foundation stone for Hero MotoCorp's two wheeler factory, the first in South India, at Madana Palem near Sri Citys Special Economic Zone in Satyavedu, about 100 km from here.
Speaking on the occasion, Naidu said that the company would invest about Rs 1,600 crore in the first phase for making improved and latest versions of bikes.
The two wheeler giant would also invest another Rs 1,600 crore for development of ancillary units here, Naidu said.
The plant, to come up on 636 acres of land, would be the company's first facility in South India, he said.
The Chief Minister requested managers of the facility to complete construction of the facility and start production by March 2019.
Naidu said his government was very much committed to extend official support for the company and added they hould also think of manufacturing electric bikes from the unit.
His government had so far inked many MOUs with auto giants in India to set up facilities in the bifurcated Andhra Pradesha and Rs 35,000 crore was going to be invested in the auto sector alone in the state, he added.
Hero MotoCorp CMD and CEO Pawan Munjal said the new unit was expected to offer employment for 12,000 people here.
By 2020 the total annual production of Hero MotoCorp would cross the 10 million mark, Munjal said.
Andhra Pradesh Industries Minister N Amaranatha Reddy and others were also present on the occasion.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)