State has made assurance in structured package of assistance
The assurance of uninterrupted power supply is an important element of the State Government’s structured package of assistance to Amway India, which signed a memorandum of understanding (MoU) with it last month for setting up a manufacturing facility in Dindigul district.
“[The] Government agrees that Tamil Nadu Generation and Distribution Corporation [Tangedco] will meet the power requirements of Amway India subject to the rules and tariff structure governing power supply,” stated a government order issued by the Industries Department a few weeks ago. On November 5, Amway India, a wholly-owned subsidiary of the US-based Alticor Inc, was among 12 firms that signed memoranda of understanding with the government.
It plans to set up a facility in the State Industries Promotion Corporation of Tamil Nadu (Sipcot)’s industrial park at Nilakottai for manufacturing nutrition tablets, cosmetic jars, bottles, tubes and oral care products with an investment of not less than Rs. 300 crore and provision for direct employment to 475 persons in three years.
Tangedco will provide “uninterrupted power supply to the facility of Amway India at the Nilakottai industrial park through a dedicated power supply if Amway India is willing to bear the entire cost of the feeder,” according to the government order issued on November 27. “The government will exempt Amway India from power cuts, peak load restrictions, power holidays and other power supply and usage restrictions.” The company had been directed to use energy efficient equipment and adopt energy efficient technologies and practices. The company will be allotted 40 to 45 acres of land in the Nilakottai industrial park in “as-is-where-is” condition. The company has to comply with all environmental standards laid down by the Central and State governments besides the Tamil Nadu Pollution Control Board. Toxic sewage or trade effluents had to be treated separately by it.
Considering the fact that the investment will be above Rs. 250 crore and the firm’s location is in a southern district (Dindigul), the government has agreed to provide refund of the payments of net output Value Added Tax plus Central Sales Tax in the form of Investment Promotion Subsidy for 10 years from the date of commencement of commercial production.
An official hinted that orders for the other companies will be issued in due course.
Keywords: Amway India