The Andhra Pradesh Government has offered PSA Peugeot Citroen a price of Rs. 1 per acre to setup a greenfield factory at Tada in Nellore district. If the French automaker plans to setup a plant in AP, there will be an investment of close to Rs. 6000 crore. However Peugeot is yet to decide as its exploring options in Tamil Nadu as well, which has the advantage of having a port for exports and already established supplier base. Land in Tamil Nadu is around Rs. 1 lakh per acre, so the Peugeot Citroen group has huge advantages in acquiring land in AP. But the French company is still evaluating options and will take a decision by April, 2011. If all goes well, we will see the launch of a small car from the Peugeot stable by the end of the year.
