25 projects worth Rs 40K cr cleared
The State Investment Promotion Board on Wednesday cleared the decks for 25 industrial projects with an investment outlay of Rs 40,379 crore. The Board, chaired by Chief Minister N. Kiran Kumar Reddy, also gave ‘additional’ tax incentives of more than Rs 1,500 crore, over and above the eligibility of these units, as per the state industrial investment promotion policy 2010-2015. Using its discretionary powers, SIPB extended the incentives in view of the mega-project status, according to information received.
The State Investment Promotion Council, headed by chief secretary Pankaj Dwivedi, had said in its report that these industrial units were eligible for reimbursement of 25 per cent Value Added Tax. The Council also forwarded SIPB requests of the companies to provide 50 per cent reimbursement. According to sources, the VBC Fertilisers and Chemicals plant, proposed for Krishna district, was eligible for tax reimbursement of Rs 176 crore but SIPB approved reimbursement of Rs 407 crore.
Similarly, Procter and Gamble, which is setting up a home appliances project in Panjerla village of Mahbubnagar district, will get Rs 100 crore “additional” tax incentive, while Gujarat NRE Coke plant in Nellore would get Rs 290 crore, though it was eligible for a tax incentive of Rs 68.5 crore, according to information. NSL Fertilizer's urea plant in Krishna district will get an incentive of Rs 261 crore against its eligibility of Rs 115.7 crore, Sentini Glass in West Godavari will get Rs 90 crore excess tax incentive, UPI Polymers Rs 18.5 crore and Olam Agro will get additional tax incentive of Rs 76 crore, it was informed.
The SIPB also cleared investment proposals of 13 cement plants, which will get 25 per cent tax reimbursement as per the industrial policy. “The government has taken a conscious decision to spread industrial projects across the state to ensure equitable growth,” major industries minister J. Geetha Reddy told the media after the meeting.
The projects are spread across eight sectors: cement, chemical and fertiliser, consumer products, food, glass, steel, plastic, and textiles. They will be set up in Kadapa, Guntur, Krishna, Nellore, Visakhapatnam, Mahbubnagar, Adilabad, West Godavari, Vizianagaram, Kurnool, Ranga Reddy and Nalgonda districts.
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