State promises sops to big investors

Hyderabad, June 13 : The State Government is taking all steps to promote new industries in the State and it can also extend tailor-made benefits to suit to a particular investment requirement on a case to case basis.

Replying to question raised by TRS MLA T Harish Rao and others during Question Hour on Thursday, Major Industries Minister Dr J Geetha Reddy said that the Industrial Investment Promotion Policy 2010-15 was being implemented for the promotion of new industries in the State and in respect of Mega projects with an investment of Rs 250 crore and above or a project that creates employment to more than 2,000 persons are eligible for the incentives available for Large Industries and Medium Scale Enterprises.

Geetha Reddy informed that for Isuzu Motors, the government was giving Tax rate for input VAT of five per cent for a period of 30 years from the date of commencement of commercial production; reimbursement of 100 per cent net VAT and CST for a period of 30 years limiting to a cap of 135 per cent of investment made in seven years; waiver of Entry Tax, imposed if any, by the Government of Andhra Pradesh (at present there is no Entry Tax); Refund of 100 per cent VAT on Works Contracts. This will be included in the overall cap of VAT; Refund of 100 per cent Stamp Duty and Transfer Duty; Reimbursement of power charges as per IIPP 2010-15 Policy; building coverage ration shall be 60 per cent and Reimbursement of training grant at the rate of Rs 10,000 per person up to 2,000 workers.

For Mahindra and Mahindra Tractor Project, the government is giving reimbursement of 100 per cent Gross VAT and CST/ State Goods and Service Tax for a period of 10 years limiting to a cap of 100 per cent investment i.e., Rs 350 crore and all other benefits as per IIPP 2010-15. INN