Honda Motorcycle and Scooter India was in for a pleasant surprise when it learned that Gujarat state government has informed state assembly that the company shall receive a tax refund for 15 years along with other array of benefits. The tax refund would be for Honda Motorcycle and Scooter India manufacturing plant located at Vithalapur village in Ahmedabad district.
Viramgam Tejashree Patel, Congress MLA has called for details from Gujarat government about the agreement that has been signed between the State Government and Honda Motorcycle and Scooter India (HMSI) that details-out the benefits that shall be given to the Honda's upcoming plant in the state by the government. A written reply by Anandi Patel, Gujarat Chief Minister who also handles industries portfolio has stated that the Gujarat Government has signed a 'State Support Agreement' with the company that states proposed investment of Rs 1,100 crore for the plant. The letter also states that the state government would waive off transfer charges and stamp duty on the land that is being bought by the company for the plant.
As per the deal, Honda Motorcycle and Scooter India stands to receive a refund on net tax paid by company for about 180 months (15 years) and also a full waiver on electricity duty for five years. The revelation has come out during question hour on the first day of the Gujarat Assembly session. Honda Motorcycle and Scooter India is expected to produce about 1.02 million two-wheelers from this facility hat has been set-up at a cost of about Rs 1,100 crore.
