AP Govt Announces 'Mega' Sops to Cellphone Firms.

In order to promote manufacturing sector and attract domestic and global investments into the Electronic System Design and Manufacturing (ESDM) sector in the State, the Andhra Pradesh government has announced special package of incentives for Celkon Impex Pvt Ltd, Karbonn Mobiles(United Telelinks (Bangalore) Limited), Bhagwati Products Limited (Micromax) and LAVA International Limited, to be set up at Sri Venkateswara Mobile and Electronics Manufacturing Hub (SVM & EMH) in Renigunta & Yerpedu mandals of Chittoor district.

All four companies combined are likely to invest Rs. 1,070 crore and generate employment for 12,525 people. As per the special incentive package, these companies would be given the status of mega status. They would be provided subsidy up to Rs. 20 crore for investment of Rs. 100 crore to Rs. 300 crore, up to Rs. 30 crore for investment of more than Rs. 300 crore to Rs 500 crore and up to Rs. 40 crore for investments more than Rs. 500 crore. Besides, they would be provided interest subsidy of 5 per cent up to Rs. 1.5 crore per year for a period of seven years.

In respect of reimbursement of net VAT, they have been offered 100 per cent for a period of eight years for investment up to Rs. 500 crore and employment of minimum 1,000 persons and 100 per cent VAT reimbursement for a period of 10 years for investment of more than Rs. 500 crore and employment of minimum 2,000 persons. Apart from this, the AP Industrial Infrastructure Corporation(APIIC) would provide land to these companies at the rate of Rs. 20 lakh per acre.

Celkon Impex Pvt Ltd. would be provided 19.28 acres land, United Telelinks (Bengaluru) Limited (Karbonn Mobiles) 15 acres, Bhagwati Products Limited (Micromax)15 acres and LAVA International Ltd provided 19.28 acres in Sri Venkateswara Mobile and Electronics Manufacturing Hub.The four companies would be provided uninterrupted power supply, besides power cost reimbursement of 25 pc for five years.


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