Hero MotoCorp AP Plant construction halted by High Court

Tamil Nadu based Ishwariya Orchards has laid claim to the land which Andhra Pradesh Government had allotted to Hero MotoCorp for construction of their new plant. This has caused some serious concerns while the High Court order has brought all construction activity to a standstill.

Hero MotoCorp foundation stone
Mr Pawan Munjal, Chairman, Hero MotoCorp laying the foundation stone at their new plant site in Costa Rica last year. File Photo. Work at the Andhra Pradesh plant also commenced last year.

In June last year, it was Chief Minister N Chandrababu Naidu who contested aggressively to draw the interest of Hero MotoCorp by allotting prime land to the two wheeler major. The government was keen to attract both domestic and global investment to the state while Hero MotoCorp showed keen interest to set up one of its largest facilities in the region.

Despite the fact that APIIC possessed thousands of acres of land, Hero MotoCorp desired this particular property due to favorable infrastructure factors, among which was the land being in close proximity to Sri City. The upcoming plant was supposed to be Hero MotoCorp’s 6th plant with capacity of 1.8 million units. The company’s three other plants in Gurgaon, Dharuhera and Haridwar along with upcoming facilities at Neemrana in Rajasthan and Halol in Gujarat, would take total capacity upto 12 million units annually.

Hero MotoCorp share declines
Hero MotoCorp Brand Ambassador and Southern Superstar Allu Arjun unveils new Hero Xtreme Sports and new Hero Passion PRO in Hyderabad earlier this week.

It was only through the newspapers that Ishwariya Orchards came to hear about 844 acres of land in Madanapalem village being allotted to Hero MotoCorp by the AP Government. The petitioner has since moved High Court claiming that fair compensation, transparent land acquisition, rehabilitation and resettlement procedures were not followed, while the construction has been stalled as per High Court orders.