Triumph Motorcycles India has decided to pull back its investment of Rs. 850 crore in the state of Karnataka, due to the uncooperative approach of the government.
Initially, Triumph Motorcycles’ proposal was to build a bike manufacturing plant on a 30-acre plot at Narasapura Industrial Area in Koral district, which is about 50 kms from Bangalore. The proposal went in vain and the company has now decided to pull back its investments, citing the unwilling approach at the end of the government.
The plant’s initial manufacturing capacity was 2,50,000 high performance bikes per annum which could have further led to an increase in the employment opportunities as well, which is a major concern in the country. Though the project was initiated 4 years back i.e 2012, it failed to move an inch due to land related wrangles.
The company had even paid an undisclosed advance towards land acquisition to the Karnataka Industrial Areas Development Board (KIADB), the state government’s nodal agency for land acquisition and allotment. Fed up with the state government’s procrastination in setting issues, it is now seeking for a refund of the investment, which was made in two phases.
The only ray of hope is IAS Officer Pankaj Kumar Pandey, who took over as the CEO of Karnataka Industrial Areas Development Board (KIADB), a week ago. The company’s exit leaves the government in an embarrassed state as the neighboring states, Telangana and Andhra Pradesh, are getting more aggressive in wooing potential investors. Triumph has now chosen to consolidate its India manufacturing base in Manesar, Haryana.
Triumph Motorcycles Pulls Back Rs. 850 Crore Investment
– Triumph pulls back its investment of Rs. 850 crore
– The company proposed manufacturing capacity of 2.5 lakh premium motorcycles per annum
– Now the manufacturing base will be consolidated in Manesar
– Triumph had plans of rolling out a 250cc bike which they put on hold later