AP zeroes on Nellore – Chittor as the perfect zone to create an automobile hub

nellore -chittor to be AP auto hub

An exclusive automobile policy was unveiled by the Andhra government on 1st Dec 2014 which is aimed at attracting auto majors like Honda, Hyundai, Maruti to set up their plants. 

The policy revealed that the automobile hub will come up between Nellore and Chittoor close to Chennai and Bengaluru respectively. The AP government has come out with a slew of incentives like reimbursement of commercial sale tax, Valued Added Tax (VAT), stamps and registration fee for encouraging mega automobile integrated projects.

Principal secretary (industries department) J.S.V. Prasad said the Automobile Policy 2014-19 is intended to give a boost to auto industries in Andhra Pradesh. “There are hardly any automobile companies in AP. To attract auto  majors like Honda, Hyundai and Maruti to set up their plants in AP a proactive policy has been formulated with emphasis on the creation of  an automobile hub which will be one of the top auto clusters in India. The government will provide land depending on availability on a case to case basis. The state will also provide uninterrupted pow-er supply and a four lane road connecting the plant to the nearest hig-hway,” said Mr Prasad.

Eenadu report on this issue is here. You click on the image to zoom it.

AP incentives for the auto industry

All state clearances will be provided under the single window system within 60 days. The state also assured that as per the AP Reorganisation Act all the incentives given by the Centre will be extended to the companies. The mega integrated automobile project will have an engine plant, press shop, body shop, transmission line, assembly line, paint shop and will have an investment of above Rs 1,500 crore. The automobile companies will also bring ancillary units with an outlay of Rs 500 crore within three years and they would also be eligible for incentives under the policy.

The mother plant should be fully  established within three years. They have to invest in training, undertake corporate social responsibility projects and must provide  unskilled jobs to locals.


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