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Kyanite's MP sops under close scrutiny

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Shashikant Trivedi New Delhi/ Bhopal
Last Updated : Feb 14 2013 | 7:42 PM IST
Indore-based Kyanite Industries India Ltd has proposed to invest Rs 124 crore in setting up a solvent extraction plant to produce soya flour, soya flakes and soya oil in Indore.
 
The company has asked the state government to allot 32 hectares of land in Barlai Jagir village of tehsil Sanwer.
 
The Madhya Pradesh revenue department has said the firm will have to follow rehabilitation and resettlement provisions for the displaced people.
 
The state commercial tax department has also watered down demands of the company to exempt it from taxes on raw material purchase and sales tax on final products, saying that the machine cost of the project will not be more than 10 per cent of the total cost and a solvent extraction plant cannot be given concessions and sops.
 
The company has asked for tax exemption for a period of 11 years. "The company will get concessions in accordance with the industry policy," a government source said.
 
The state department of industries has also rejected another demand of the company on entry tax exemption for a period of 11 years.
 
"The solvent extraction plant is on the negative list of the industrial classification; however, few other by-products will be granted concessions or exemptions on entry tax on raw material, incidental goods and packing materials since they fall under in food-processing category," said the source.
 
Another demand of the company to exempt it from entry tax payment on imported crude and edible oil for refining has also been rejected.
 
An apex level committee on investment promotion has however considered a demand of exemption from Mandi tax on soyabean seeds and other lentils used in processing for a period of three years.
 
Further, Kyanite has demanded exemption from power cess and electricity duty, and flexibility on labour laws for a period of 11 years.
 
"Kyanite will be exempted from electricity duty for a period of seven years but cess will be levied at the rate of 10 paise per unit," the source said, adding, "The company may also be offered some flexibility in labour laws at par with those offered to the seasonal food-processing industry."

 
 

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First Published: Nov 23 2006 | 12:00 AM IST

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