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Old 20th July 2015, 12:03   #1
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Default Construction of Hero MotoCorp plant in AP stopped by High Court

Construction work at Hero MotoCorp's upcoming plant in Andhra Pradesh has been halted by the Hyderabad High Court.

The order to stop construction activities comes after Tamil Nadu-based Ishwarya Orchards filed a petition with the High Court claiming ownership and possession of the land that was allotted to the two-wheeler major on 16 September 2014. This piece of land, measuring 844 acres, is situated in Madanapalem Village, adjacent to Sri City industrial park. According to Ishwariya Orchards, it learnt through newspapers about the allocation of the land to Hero MotoCorp. The company had obtained interim injunction orders from the Court in 2007, when the state government attempted to procure its lands.

If this plant is built, it will be Hero's sixth plant in India. Hero is building it at a cost of Rs. 3,000 crore. It will have an annual capacity of 1.8 million units and is expected to take Hero's total manufacturing capacity in India to 12 million units.

Hero MotoCorp has three manufacturing facilities, located at Gurgaon and Dharuhera in Haryana and Haridwar in Uttarakhand. It is in the process of setting up two more facilities - at Neemrana in Rajasthan and Halol in Gujarat.

Source: ET Auto
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