The Karnataka government today decided to extend tax concessions to Toyota Kirloskar Motor Pvt Ltd (TKML) for setting up their second small car manufacturing plant at Bidadi, about 35 km from here. The state cabinet took a decision in this regard on Thursday.
Though the tax concessions offered to TKML amounts to a meagre Rs 9 crore on the import of tools and machinery worth Rs 450 crore for its second car plant, the concessions extended to the company totals Rs 89 crore.
“The state government had offered a tax concession of Rs 80 crore when Toyota started construction of their second plant in 2009. Today, the cabinet decided to offer another Rs 9 crore on import of certain machinery for their second car plant,” Dr V S Acharya, minister for higher education, said.
Briefing reporters on the outcome of cabinet meeting, chaired by chief minister B S Yeddyurappa, he said the total investment of TKML on their car plant would go up to Rs 4,043 crore. The plant is set up mainly to manufacture Etios car, both hatchback and sedan versions.
Toyota has set up the second car plant with an installed capacity of 70,000 units per annum and has already started production of the Etios sedan, which was launched in December 2010. The company on Wednesday announced that it would launch the hatchback version, Etios Liva on June 27 in Delhi.
Toyota, which opened its first plant in June 1998, manufactures 80,000 units per annum. It makes Corolla Altis, Innova and Fortuner in the first plant, while it imports Camry, Prado, Prius and Land Cruiser as completely built units.
