International BusinessHero Honda holds talks with U'khand govt over land issue
With a piece of land at the Haridwar industrial plant of Hero Honda becoming a bone of contention with the State Infrastructure and Industrial Development Corporation of Uttarakhand Ltd (Sidcul), the company has begun talks with the state government over the issue.
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The auto giant held talks with top government officials over the issue last evening.
“The talks were inconclusive and there was no outcome,” said Chief Secretary I K Pandey. The talks came after Sidcul served a final notice on Hero Honda for taking back the vacant plot, claiming the company did not pay its land premium.
Hero Honda officials also held separate talks with Principal Secretary, Industries, P C Sharma late in the evening but there was no outcome, officials said. However, the officials expressed hope that the company would be able to reach an understanding with the state government.
Sidcul, the state government’s nodal agency for industrial development, had allotted 265 acres of land to Hero Honda for setting up a manufacturing facility at Haridwar in 2006. According to Sidcul’s latest notice, the group set up its facility on only 119 acres and kept 50 acres for its vendors, the land premium for which has been paid to Sidcul. But for 94 acres of unused land, Hero Honda is still to pay the land premium of Rs 50 crore at the allotment rate of Rs 1,000 per sq metre.
Haridwar is now the key facility of Hero Honda, in view of heavy tax breaks available in the hill state.
However, Hero Honda differs with Sidcul’s version. A Hero Honda spokesman said according to the company’s estimate, the industrial area, leaving roads, etc, would be 54 acres, and “we are ready to pay the premium for 54 acres, subject to resolution of these issues with Sidcul.”
“We hope to have mutually beneficial resolution of all these issues at the earliest, as we believe mega projects such as ours will certainly create wealth and economic value for the people of the state,” the Hero Honda spokesman added.
Nevertheless, in an ultimatum to Hero Honda, Sidcul Managing Director Kunal Sharma has given time till August 31 to deposit the land premium or else the vacant land would be taken back.