Peugeot Citroen gets land from AP Govt at Re 1 per acre

Published On Feb 24, 2011 01:15 PM By Vidyadhar for Peugeot 309

1.4K Views
Write a comment

Peugeot Citroen is eyeing to enter the Indian auto market from quite sometime but the French auto giant is still in a fix for finalizing the location of its production unit.It was being speculated that PSA Peugeot Citroen is planning to invest Rs 6,000 crores for its unit establishment, but the company is still scrolling between Tamil Nadu and Andhra Pradesh. As per a close source, the Andhra Pradesh has offered an acre land for Re 1 which is luring the Peugeot Citroen.

The French auto mobile manufacturer is being offered land by Andhra Pradesh government for a greenfield plant at price as less as Re 1 per acre at Tada in Nellore district. As per the report which gives a further probe in the matter says that in the coming two months, the French auto giants will finalize on the set up. Peugeot Citroen is looking for Tamil Nadu and Andhra Pradesh for setting up a new plant. However, Andhra Pradesh is offering cheap land of almost 1000 acres including other infrastructure benefits to fetch the investment by Peugeot for setting up the plant for the production of its cars. While Tamil Nadu has ports to deal with auto exports (at Ennore and Chennai) and also large automotive hub along with component supplier. As per the industry experts, the cheap land cost may shift the company's decision and expecting to zero on Andhra Pradesh.

Tamil Nadu was also facing issues related to labour unrest and electricity shortage. An auto mobile expert said that the production land offered at Tada in Andhra Pradesh which is next to Tamil Nadu and near by Sri City SEZ in the Chittoor District. It means that the French company may get the benefit of using Ennore Port in Tamil Nadu as it shares border with Andhra Pradesh. The company will also be in profit as in Andhra Pradesh it will ensure better infrastructure and can also enjoy the port facility of the other state. This deal is very vital for Andhra Pradesh as at present it does not have any auto mobile company invested in the state.

Write your Comment on Peugeot 309

Write a Comment...

1 comment

sabhapathy

Feb 24, 2011, 5:12:12 PM

Tada boasts of having the advantages of AP and TN. It has very large ports in TN, at a few KMs away south, and a new green sophisticated port in the North, the Krishnapatnam port. And land @Re1 is a great deal for Peugeot to consider. And AP will strive to provide the best deals to attract more investments, citing the advantages Peugeot might enjoy.