While Hero Honda is yet to take its final decision about the forth plant, a team led by the Chief Minister BS Yeddyurappa recently met Hero Honda's Chairman Brijmohan lal Munjal and MD Pawan Munjal with a view to convince the company to choose Karnataka as the destination for the fourth unit. In fact, the Munjals have short listed Karnataka as one of the states where it would like to set up its new unit.

The Hero Honda team has however raised a handful of concerns about the fiscal incentives which the company can get if they choose Karnataka as the destination. The government has in return promised the two-wheeler maker will get refund on value added tax (VAT) and other concessions if the investments are above Rs 250 crore.

And keeping in mind the investment that is crossing the Rs. 2,000 crore levels, Karnataka is a front-runner for the fourth unit. In fact, it is as important for the state as it was for the company as the government is planning to make the Hubli-Dhanwad area an auto hub where Tata Marcopolo already manufactures buses.