The French car major Peugeot Citroen SA is set to enter Andhra Pradesh. Now the state is looking forward to another proposal from Hyundai.
The Korean car manufacturer had approached the state with plans to open a unit to produce spare parts.
While Andhra Pradesh is eager to start by enticing a major name to convert the state into a car center, Hyundai is believed to have dispatched an altered proposal, seeking the state to equal the incentives provided by Tamil Nadu, a source said.
The source added, “These include VAT reimbursement for 21 years and waiver of various taxes including those imposed by the Centre. Andhra is yet to take a call on this”.
Andhra had given around free 50 acres adjacent to the border of Tamil Nadu, along with guaranteeing water and power supply.
Hyundai is anticipated to invest around Rs 500 crore in the 1st phase and Rs 700 crore in the 2nd one.
But in the 2nd phase, the company requires another 50 acres, which the government is ready to give.
Andhra is expected to take a benevolent stand on the altered proposal from Hyundai.