Mahindra & Mahindra's management decision to set up a plant in Assam will however heavily rely on the tax incentives, land, availability of necessary infrastructure from the state government and many other crucial parameters.
24 Oct 2016 | 9115 Views | By Sumantra B Barooah
After establishing its manufacturing footprints across the northern, western and southern regions, Mahindra & Mahindra (M&M) has now confirmed that it is evaluating yet another production facility in the eastern region in the near future.
The management decision on the same, however, will heavily rely on the tax incentives, ...
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After establishing its manufacturing footprints across the northern, western and southern regions, Mahindra & Mahindra (M&M) has now confirmed that it is evaluating yet another production facility in the eastern region in the near future.
The management decision on the same, however, will heavily rely on the tax incentives, land, availability of necessary infrastructure from the state government and many other crucial parameters.
Autocar Professional had, last week, broken the story that M&M is actively considering setting up a plant in the state of Assam, and had a delegation of top executives meet the state government officials in July earlier this year.
In an email clarification to Autocar Professional, M&M has now confirmed its intent of setting up a plant in the region given that it receives incentives from the Central government and the State government which are in line with what the Central government and Uttarakhand government had provided earlier.
“We had met the chief minister (of Assam) a couple of months ago and (had) expressed our intent to put up a plant subject to grant of incentive package by the Central government and State government to meet our requirement in line with what the Central government and Uttarakhand government had provided, and the availability of land suitable to our manufacturing requirement,” the company said in its statement.
Interestingly, Uttarakhand's industrial policy is known for encouraging investments by offering 100 percent relief in state excise duty for 10 years and 100 percent relief in income tax for the first five years. Thereafter, there is 30 percent relief to companies and 25 percent relief for others, exemption from entry tax on plant and machinery for setting up industry for undertaking substantial expansion and modernisation, 50 percent of the cost incurred in installing pollution control equipment to be reimbursed among other factors.
V K Pipersenia, chief secretary, government of Assam, had earlier confirmed to this publication that an M&M delegation comprising top executives had met with the state government in July this year. "They have expressed interest in setting up an automobile manufacturing base in the state, as well as to invest in expanding Mahindra Holidays into Assam," Mr Pipersenia had told Autocar Professional recently.
Patanjali Yogpeeth and Dabur are, reportedly, the other companies which are set to invest in the state.
With its decision to invest in Assam, M&M could become the first automotive company to invest in the state, which would also provide an upper hand to the homegrown carmaker in terms of logistics and market penetration. Currently, M&M is understood to have a manufacturing footprint of five plants across five states.