Hero Motocorp has sought Value Added Tax (VAT) exemption from the Karnataka government to set up its ₹1,450 crore two-wheeler manufacturing unit in the State.

The company had shortlisted Mummigatti near Dharwad in North Karnataka to set up the plant. Responding to a question raised by Jagadish Shettar, Leader of the Opposition in the Assembly, that Hero Motocorp is exploring options of investing in Seemandra (Andhra Pradesh), Karnataka Chief Minister, Siddaramaiah, said, “The company which has plans to manufacture 1.8 million two-wheelers at Dharwad has made certain demands. We are in talks with them.”

“The government has already approved the proposal at the SHLCC (State High Level Investment Cearance Committee) to provide power and water at the proposed unit. We are keen to see the plant come up in the State for it will provide employment to 25,000 people,” he added. On July 5, Hero Motocop officials visited Mummigatti to inspect the land. About 200 acres have been allotted to the company.