French auto maker Peugeot is considering to enter India from quite a few time now. But, the company has not finalised land for its manufacturing unit which will be in association with Citroen. Tamil Nadu and Andhra Pradesh were top contenders to grab the deal with Peugeot-Citroen. As per some sources, the Andhra Pradesh has offered land for Re. 1 per Acre to lure the company. But, there is new twist in the story, as an auto industry official from Gujarat claims that Peugeot is scouting for land in Gujarat.

Peugeot-Citroen-Logo

“A delegation from Peugeot recently visited us. They have evinced interest in setting up a plant in Gujarat, for which the land requirement was told to be 150 acres,” the Gujarat official said. “We have shown them a site in Bol village near Sanand, which is a proposed industrial estate, to be developed as an automotive hub by the Gujarat Industrial Development Corporation (GIDC), near Tata’s Nano plant,” he said

“A final decision is expected to be taken soon by the Peugeot headquarters,” the official said.

As for the South-Indian state’s offer, Andhra Pradesh government is offering land to Peugeot for a greenfield plant at price as less as Re 1 per acre at Tada in Nellore district. As per the report which gives a further probe in the matter says that in the coming two months, the French auto giants will finalize on the set up.

Another player in the race is Tamil Nadu, 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.