 "Andhra clears investments worth over Rs 3,000 crore")
The country's largest paint maker has approached the government with a proposal to build 400,000 kilolitre manufacturing plant near Pudi village in the north coastal district of Visakhapatnam, according to government officials.
At its meeting held in the evening, the SIPB agreed to extend various incentives for an investment of Rs 1,818 crore proposed by the company. A refund of gross VAT/CST and any other levy of a similar nature to the extent of 150 per cent of the eligible investment, about 100 acres of land at concessional price and power subsidy are among the various incentives requested by the company.
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Under the existing policy, the state government offers tailor-made incentives for mega projects, over and above the general incentives applicable to the investments of all sizes.
The company was in the news for being constantly wooed by the governments of Karnataka and Andhra Pradesh to locate its new plant in their respective states. Growing competition among the southern states as they began vying for the new industrial investments was already reflected in an enhanced tax incentive package announced recently for the automobile sector by the AP government.
Asian Paints proposes to commission the plant in October 2019 after securing the land and other clearances in the initial years. It would start the construction work in 2016, according to the state government officials. Earlier, the government of united AP had extended 50 per cent VAT reimbursement for a five-year period among other subsidies to a Rs 250-crore manufacturing plant set up by Kolkata-headquartered Berger Paints in Anantapur district.
Asian Paints' facility was among the four investment proposals cleared by the SIPB. Others include Universal Coke and Power Limited's proposal to set up a non-recovery coke oven plant with a total investment of Rs 725 crore in Nellore district. Shriram Ventures, a part of Chennai-based Shriram group, is the promoter of Universal Coke. Shriram Ventures is also a holding company of Shriram EPC Limited, the promoter of Haldia Coke and Chemicals Private Limited which owns three metallurgical coke plants in India and coking coal mines in the US, according to the information available with the government.
The company has proposed to set up a 500,000-tonne capacity (tpa) coke oven project along with a 35-Mw cogeneration power plant near Krishnapatnam, officials said.
The state government also cleared a maize processing plant being set up by Gujarat Ambuja Exports Limited at an investment of Rs 240 crore in Kurnool district.
Apart from this, the SIPB has extended incentives to four garmenting units proposed by Shahi Exports Limited at a total investment of Rs 152 crore. These four units will come up in four different locations in Chittoor and Anantapur districts with a potential to create 11,000 jobs to rural youth, according to the officials.
The SIPB also decided to remove tax on biogas generated from waste by including it into the zero rated schedule of the VAT as compared with 14.5 per cent tax rate being levied currently.