Hero MotoCorp Ltd, the country’s largest two-wheeler maker, is in talks with Telangana and Andhra Pradesh Governments to set up a plant at an investment of around ₹1,200 crore.

There seems to be intense efforts from both Governments to woo the company to locate the plant in their respective State.

According to sources, the company was approached by the representatives of both Governments after it had last month announced its intent to set up a new plant in South India.

Multiple options While they were told of multiple options in both the States, there is no final word on the move as yet from the company.

But as things stand today, the power supply situation and potential vendor supply network are something a two-wheeler manufacturing company would consider before finalising the location, a Government official said.

Hero MotoCorp had in June commenced production at its fourth plant at Neemrana, Rajasthan.

It now has an installed annual capacity of 7.65 million two-wheelers.

What’s on offer According to a senior official tracking the company movements, its management earlier has had parleys with the Karnataka Government and was offered a site in Davanagere.

However, with both Telangana and Andhra Pradesh now expressing their keenness to woo the company, they have decided to explore what is on offer from both sides.

SriCity, a planned business city located close to the Andhra-Tamil Nadu border, had also pitched for the project earlier.

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