Sunday, October 5, 2008

AndhrapradeshState opens its gates for Nano to drive in

State opens its gates for Nano to drive in

Hyderabad/Ahmedabad, Oct. 4: The state government on Friday announced huge sops to attract Tata’s Nano car project to Andhra Pradesh even as the Gujarat government suggested that it had bagged the project. The sops announced by the state are part of the government’s ultra mega integrated automobile policy and are on par with those announced by the Tamil Nadu government.
The announcement comes just a day ahead of the meeting of Mr Ravi Kant, the Tata Motors MD, with the Chief Minister, Dr Y.S. Rajasekhar Reddy. That meeting is set for 4 pm on Sunday. Sources said that Mr Ravi Kant had asked for the meeting, the first time that Tata Motors had done so.
Asked about the recent meeting of Mr Ravi Kant with the Karnataka Chief Minister, Mr B.S. Yedyrurappa earlier, the sources said that meeting was regarding the group’s projects in Dharwad. Among the sops are allotment of land at concessional rates, 100 per cent exemption from stamp duty, subsidised power with dual feeder line, exemption from electricity tax for 10 years and refund of gross output VAT and CST for 21 years.
The government has also offered exemptions from entry tax, VAT on capital goods, works contract tax, octroi and other state levies. The Chief Minister who cleared the incentives for automobile units at the meeting of the State Investment Promotion Board. Under the new policy, the government will provide incentives to automobile projects, either new or those under expansion, which are ready to invest not less than Rs 4,000 crore.
These automobile units should have an engine plant, press shop, body shop, transmission line, assembly line, and paint shop in the same location. The investment should be made in seven years from the date of MoU with the government. The policy will also provide many benefits to units located in government promoted industrial parks including higher capital subsidy, one time patent registration with up to 50 per cent expenses or Rs 1 lakh (whichever is lower), and infrastructure subsidy of 25 per cent of capital cost or Rs 25 lakh (whichever is lower) for setting up effluent treatment /waste disposal sites. An official said that the policy was meant to provide a friendly ambience to automobile giants. “Dr Reddy wants major car manufacturers like Tatas to set up units here,” he added.
A report from Ahmedabad said the Nano is likely to find a place at Sanghan village in Abdasa taluka of Kutch district and the Gujarat Chief Minister, Mr Narendra Modi, is likely to make an announcement on this on October 7. Mr Modi will complete seven years as CM, a record in Gujarat. Two other locations have been offered to the Tatas Sanand near Ahmedabad and Halol in central Gujarat. Sources said Kutch stood better chances for bagging the project