Quite some times back, we had reported that Peugeot Citroen were looking to set base in India and were scouting for land in India. The most promising states were the ones in South India namely Andhra Pradesh and Tamil Nadu. But it seems that the interests could sway in the former’s way. The reason being that the Andhra Pradesh government is offering land to the French manufacturer at the rate of Rs 1 per acre for the proposed facility. This was reported in the business daily, The Business Line.
As part of the deal, the Andhra Pradesh government is looking at the Rs 6000 crores investment that the French company would be putting in for the factory and other assorted things. The state also doesn’t have any automobile ventures been started in its vicinity and the Peugeot deal would be a perfect start to attract the attention of other manufacturers. Tamil Nadu also has a few tricks up its sleeves. The coastal state boasts of having two ports based in Ennore and Chennai as also a component supplier base for the automobile industry setup. But then the Andhra government has offered Peugeot land near Tada. This location is situated close to the Special Economic Zone or SEZ which is Sri City. Sri City is located close to the Tamil Nadu border and hence easy access to the Ennore port is assured.
Officials at Peugeot Citroen, as usual are tight lipped about the whole process and it is expected that in two weeks time, the company would take a firm decision and let the media know about it. As of now, roll the dice and wait.