Hero MotoCorp likely to sign MoU with AP today.

Hero MotoCorp Limited is likely to sign an MoU with the Andhra Pradesh government for setting up a motorcycle manufacturing plant in the state. The investment likely to be committed by the company is around Rs. 2,200 crore, according to government sources. During his recent visit to Delhi, the sources said, chief minister N Chandrababu Naidu succeeded in convincing Hero MotoCorp managing director and chief executive officer Pawan Munjal and his father Brij Mohan Munjal to choose AP as its manufacturing base for South India. The state government has offered 600 acres of government land in Chittoor district adjoining the SriCity Industrial Park, at almost zero cost, besides 100 per cent exemption of value-added tax (VAT) on bikes made here. Power subsidy and other incentives available under the existing industrial policy were also being extended to the company, the sources told Business Standard.