Karnataka Government has affirmed incentives for the Honda Motorcycle and Scooter India’s two-wheeler manufacturing plant established in Narsapura at Kolar district. The company is currently intending to invest a whopping amount of Rs. 1350 crore on this plant enabling an annual production of over 1.8 million units of two-wheelers.
Incentives allotted in correspondence with Karnataka’s State Industrial Policy include deferred VAT payment in the form of interest free loan to the tune of 40 percent of Value Added Tax (VAT) yielded from the unit in a span of a decade, repayment commencing from the 11th year in ten equal installments.
The cabinet meeting headed by Mr. D V Sadananda Gowda, Karnataka Chief Minister, also announced the reimbursement of 95 percent of the Central Sales Tax (CST) due for first five years. Further, the two-wheeler plant will be completely exempted from paying concessional charges for land registration purposes, stamp duty charges and also duties levied on electricity usage for the initial five years.
Moreover, Mr. S Suresh Kumar, Minister for Law and Parliamentary Affairs, has raised an obligation on this approval stating that the company, while providing employment opportunities should give preference to locals to the extent of 80 percent and in case of any divergence from this obligation, the incentives granted will be revoked.
