Signs MoU with Government of Andhra Pradesh
Asian Paints announced that the Company on 10 March 2015 has entered into and signed a Memorandum of Understanding (MoU) with the Government of Andhra Pradesh to set up a manufacturing facility for paints and intermediates at Pudi Village, Rambilli Mandal, Vishakhapatnam District, Andhra Pradesh.An amount of approximately Rs. 1750 crore would be invested by the Company in phases over a period of 12 years from the date of commencement of construction, including the cost of land admeasuring approximately 110 acres, subject to due diligence and obtaining necessary regulatory and other approvals. The maximum capacity of the said manufacturing facility would be 4,00,000 kiloliters per annum, which would be achieved in phases.
The Company would use latest manufacturing concepts to produce Paints and intermediates in the said plant in an environmentally friendly manner.
The Andhra Pradesh Government has offered the following package of incentives to the Company for setting up of the aforesaid paints manufacturing plant:
Reimbursement of 100% Gross VAT/State Goods and Service Tax (SGST) or similar levy of taxes in the state of Andhra Pradesh for a period of twelve (12) years starting from the date of commercial production, subject to an overall cap of 100% of eligible investments and that the Company achieves 70% of the proposed investment of Rs. 1,750 crores within a period of five (5) years. Total reimbursement would be scaled down to the extent of concessions (other than accelerated depreciation), if any, offered by the Central Government of India.
All other incentives as per the Andhra Pradesh Industrial Investment Promotion Policy 2010-2015.
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