The Telangana government has decided to allot a little over 18 acres near Hyderabad for mobile phone maker Micromax’s proposed plant, at Rs.30 lakh per acre without infrastructure cost.
The proposed facility of Bhagwati Products Ltd (Micromax) would get the status of an ‘Anchor’ unit. Thus, units supplying accessories to it, up to a maximum of 10 plants, would also be considered for allocation of land on cost basis.
The land is at Fabcity (Ecity) SEZ at Raviryal and Srinagar (V) in neighbouring Ranga Reddy district.
The initial investment proposed by Micromax on the plant is Rs. 80 crore and Phase I of the project would have an employment potential of 1,250 persons, according to the government order (GO) issued on Tuesday.
Incentives sought
The company had sought special package of incentives from the government, including full reimbursement/retention of VAT/CST for 10 years from the commencement of operations; 20 per cent capital subsidy on fixed capital investment other than land; fixed power cost reimbursement of Rs.1/Kwh for 10 years; and certain relaxation in labour related issues especially those relating to inspections.
While according approval to set up the plant, the order said that incentives and concessions announced in the policy for mobile manufacturers shall be applicable to the unit.
As per the policy, which was also notified on Tuesday, the government among other measures has decided to levy VAT at 5 per cent and waive the 2 per cent CST.
Reimbursement of new VAT is to be undertaken on a quarterly basis and applicable for first five years without an investment limit.
It would provide 20 per cent capital subsidy (subject to a ceiling of Rs.10 crore per company).
The company proposes an initial investment
of Rs. 80 crore and phase I of the project will have an employment potential
of 1,250 persons
