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Peugeot Citroen Plant In TN Or AP?

By By: Vicky.in
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Peugeot Citroen
Having decided to set afoot in the Indian auto industry by a re-entry, the French car maker Peugeot Citroen is quite undecided about the proposed manufacturing site. Currently the company has got offers from two governments Andhra Pradesh and Tamilnadu. Peugeot Citroen is aiming to finalize the deed by the end of this month thereby putting an end to the speculations. Sensing the whooping amount of investment Rs 5900 crore, both the governments have come forward with lot of incentives to the car maker. By way of negotiations, Peugeot Citroen will get the following from the Tamilnadu government

Easy interest loans, tax benefits on VAT, guaranteed provision of non-problematic manpower and feasibility of shipping from two ports. This comes in the midst of officials from the car maker making necessary inspection of manufacturing sites, initiating negotiations with the officials concerned including a meeting with the State Dy CM. Comparatively, the car maker would get the following from the AP government

Manufacturing Sites to choose from Nellore and Chittoor districts, port facility from Krishnapatnam region. In all the AP officials said Peugeot Citroen required 800-1000 acres of land at an investment of Rs 6000 crore. A concrete picture from the company will evolve by the mid-January, said an official.

Peugeot Citroen"s entry will be on the lines of Ford, Nissan, Hyundai, Renault, BMW and Daimler-Benz who all have established their presence in the state of Tamilnadu making it a busy hub for auto exports. These companies have the advantage of uninterrupted supply from the component vendors, said an official from TN. The offer of VAT exemption of 12.5% is a boon to the manufacturer in addition to labor force. An official communique in this regard is expected from the company"s CEO who said there will be an active reentry into the Indian car market.

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Article Published On: Monday, January 3, 2011, 18:01 [IST]
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