A high-powered delegation from the French automotive major PSA Peugeot-Citroen, which is in the process of finalising plans for its Indian manufacturing base, has held discussions with the Andhra Pradesh and Tamil Nadu governments.

The delegation, led by the company Chairman and Managing Director, Mr Philippe Varin, senior representatives in India overseeing the company plans and officials from the French embassy called on the Andhra Pradesh Chief Minister, Mr N. Kiran Kumar Reddy, late on Tuesday, and discussed issues relating to the proposed car plant.

The company executives have been evaluating various options for locating their greenfield plant in India. They have been offered attractive packages by Andhra Pradesh and Tamil Nadu for the proposed Rs 6,000-crore project.

The Andhra Pradesh Government has offered the company 900 acres near Sri City in Nellore district, which is about an hour's drive from Chennai. Andhra Pradesh has offered the company land at a nominal Re 1 an acre, VAT concessions and other incentives as per the new industrial policy for 2011-2015, which links benefits to job creation.

In Chennai, the delegation held discussions with Government officials on Wednesday. While declining to share specific details, the officials said, “they have a huge investment plan.” The Government has shown them around various locations where they could set up operations. Discussions are continuing, they said.

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