Special Correspondent

HYDERABAD: The Andhra Pradesh Government has stepped up its efforts to persuade Tata Motors Limited to establish the Nano car project in the State following the company’s final decision to pull out from Singur in West Bengal.

As part of these efforts, it will offer land and compensation for the loss sustained by the company while withdrawing from Singur besides other concessions like VAT re-imbursement and subsidised power.

Major Industries Minister J. Geetha Reddy, who spoke to the media here on Saturday after a meeting of the State Investment Promotion Board (SIPB) chaired by Chief Minister Y.S. Rajasekhara Reddy, said every State was trying to woo Tatas to get the project and AP too was also doing the same.

In a major policy decision, the SIPB resolved to allow cent per cent VAT reimbursement for 21 years to automobile ultra mega projects with an investment of Rs 4,000 crore and above. This concession will be extended to similar projects in aviation and aerospace sectors for which land was allotted in Ranga Reddy district.

The SIPB also approved a proposal for 50 per cent VAT reimbursement to six upcoming mega projects with investment above Rs. 200 crore each. The projects included 38 ginning units being set up by Nuzvid Seeds Limited with an investment of Rs. 280 crore.

A Rs. 125-crore bio-oil unit proposed at Gandepalli in Krishna district by Sentini Bio-Products to make ethnol from maize and a Rs. 150-crore paper-making unit by the ITC near Aswapuram in Khammam district were two other projects which were also allowed 50 per cent VAT reimbursement.

The other projects are Rs. 150- crore accessories-making unit proposed by Hinduja Foundries at Muppireddypalli in Medak district to supplement the MLR car project, Rayalaseema Alkalis (Rs. 120 crore) and a textile mill being set up by DPM Textiles at Yedlapadu in Guntur district (Rs. 332 crore).