Inks pact with Mahindra, Bajaj Auto, Tata Motors & Volkswagen to rope investments of over Rs 11,510 crore
Maharashtra has achieved the distinction of being the preferred investment choice of Indian and Global automobile players that will cumulatively invest Rs 11,510 crore in Maharashra. While three projects will be in the Pune district one will be in Waluj in Aurangabad. Total investment of all four projects puts together will result in employment opportunities for 6270 people.
Chief Minister Prithviraj Chavan, State Industries Minister Narayan Rane, M&M Chairman Anand Mahindra, Tata Motors Executive Director for commercial vehicles Ravi Pishrody, Volkswagen Executive Director Pankaj Gupta, Chief Secretary Government of Maharashtra Swadheen Kshatriya and Apurva Chandra, Principal Secretary (Industries) were present on the occasion.
In April 2011, the state amended the VAT Act to make tax set-off claim applicable on net sales and not on gross sales. Auto industry complained that this took away the competitive advantage of the Chakan-Talegaon auto hub. Some companies had even threatened to pull out their investments from the state.
Under the tweaked norms and the state's industrial mega project policy announced in June 2005, large auto investors and also non-auto sector investors with an investment of Rs 1,500 crore or more are entitled for VAT set-off claim on gross sales. However, the claim will not exceed 12.5% of the total eligible VAT refund in a year.
As per the agreements signed between the company officials with the state government officials, Mahindra & Mahindra and Tata Motors will invest Rs 4,000 crore each while Bajaj Auto and Volkswagen will invest Rs 2,000 crore and Rs 1,510 crore, respectively.
These investments are attracted under the Industrial Mega Project Policy announced in June 2005. So far, 413 mega projects with an assured investment of Rs 3,23,802 crore has been brought in with potential employment opportunities 3.62 lakh persons. Of the 413 projects, 114 projects have gone into production so far.
In the current year since April 2014, ten mega projects with an assured investment of Rs 2,702 crore with employment potential of 5,809 persons has been signed before Thursday’s four mega projects were signed.
Mahindra & Mahindra has proposed to invest Rs. 4000 crores to expand manufacturing facilities for automobiles at Chakan, Tal. Khed, Distt. Pune, [a ‘C’ zone under the Package Scheme of Incentives (PSI), 2007] and provide employment to 2500 persons.
Tata Motors has proposed to invest invest Rs. 4000 crores to expand manufacturing facilities for automobiles at Distt. Pune, [a ‘B’ zone under the Package Scheme of Incentives (PSI), 2007] and provide employment to 1200 persons.
Volkswagen India has proposed to invest Rs.1510 crores for the purpose of manufacturing of Diesel engine and related part of backward integration at Chakan, Tal. Khed, Distt. Pune [a ‘C’ Zone under the Package Scheme of Incentives (PSI) 2007] and provide employment to around 570 persons.
Bajaj Auto has proposed to invest Rs. 2000 crores in two phases (including Rs.1000 crores investment of Captive Process Vendors) for capacity expansion from 22,80,000 to 33,60,000 in first phase and from 33,60,000 to 38,40,000 in second phase for the manufacture of Two wheelers and Commercial vehicles at Waluj MIDC, Tal. Gangapur, Distt. Aurangabad [‘D' zone under the Package Scheme of Incentives (PSI) 2007] and provide employment to 2000 persons.