Govt to extend incentives to automobile industries

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Hyderabad, Oct 4 (UNI) Andhra Pradesh Chief Minister Y S Rajasekhara Reddy today decided to extend incentives to automobile industries in the state under the 'Ultra Mega Integrated Automobile Policy' to attract such industries to the state.

According to a release here, this was decided at the 49th State Investment Promotion Board Meeting, chaired by the Chief Minister at the Secretariat.

The incentives were meant for automobile projects, either new or expansion projects that would have an engine plant, press shop, body shop, transmission line, assembly line and paint shop either on its own or in consortium or joint venture mode in the same location with an investment of not less than Rs 4,000 crore to be made in seven years from the date of MoU with the government or on any other date specified by the government.

The land would be allotted on case to case basis at concessional price with 100 per cent exemption on stamp duty.

The other incentives also included power supply with dual feeder line, the cost of which would be duly met by the state government and exemption from electricity tax for 10 years for both state-generated power and captive power.

The policy also allowed industries located in government-promoted industrial parks, 150 per cent of the normal capital subsidy.

One-time reimbursement of patent registration up to Rs 50 per cent of the expenses or Rs one lakh (whichever is lower) to production units and critical infrastructure subsidy of 25 per cent of capital cost or Rs 25 lakh (whichever is lower) for setting up effluent treatment plants or waste disposal sites were also allowed in the policy.

The Chief Minister agreed to provide 50 per cent VAT reimbursement from the commencement of operation of each unit of the industries as an additional incentive instead of 25 per cent besides all other incentives under the Industrial and Investment Policy, including power subsidy.

UNI BR SJ 2029

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