India’s largest two wheeler maker Hero Moto Corp plans to invest Rs 2,200 crore to set up a manufacturing plant in Andhra Pradesh, according to a senior official. The state Cabinet on Monday cleared allotment of 600 acres near Sri City  integrated business city in Chittoor district to Hero Moto-Corp, steeling a march over neighbouring states to host the factory. The land chosen belongs to APIIC and is near Madanapalem near Satyavedu.

“The top leadership of Hero Moto-Corp led by Pawan Munjal met Andhra Pradesh chief minister in Delhi last week and entered into a preliminary agreement to set up the project in the southern part of the state, which may be entitled for central incentives as a part of the erstwhile AP state bifurcation Act,” the Andhra government official said. Hero MotoCorp could not immediately be reached for comment. A top executive of Sri City, which houses corporates such as Cadbury, PepsiCo, Kellogg’s, Colgate Palmolive, Alstom and Isuzu Motors, said Hero MotoCorp new plant will provide employment to around 9,000 people. “Though the land the AP government has agreed to allot is next to our integrated business city belonging to the AP Industrial Infrastructure Corporation, Hero MotoCorp would use our infrastructure for most of its operations,” the executive said, requesting anonymity.