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Karnataka demands jobs for locals at Honda's Kolar plant

Saturday, 18 February 2012 - 11:00am IST | Place: Bangalore | Agency: dna

The state cabinet approved tax sops and incentives for the proposed two-wheeler plant to be set up by Honda in Kolar.

The state cabinet on Friday approved tax sops and incentives for the proposed two-wheeler plant to be set up by Honda Motorcycles and Scooters India Limited in Kolar, on the condition that the company would ensure at least 85% of the jobs for localites.

The Honda plant will be set up at Narasapur in Kolar district, about 55 km from Bangalore.  The plant  will have  an annual production capacity of 18 lakh two-wheelers.

The company has promised to provide direct employment to 3,200 persons and indirect employment for about 15,000 persons.

“The cabinet has agreed to waive 40% VAT for the first 10 years and allow the company to consider it as interest-free loan. The company would have to start repaying the loan from the eleventh year of its operation.

“The state government would reimburse 95% of the central sales tax to be paid by the company for the first five years of its operations and provide 100% exemption from stamp and registration duty on the land allocated for setting up the plant,” said law and parliamentary affairs minister S Suresh Kumar, after the cabinet meeting.

The Rs1300-crore plant is coming up on a plot of 96 acres.

The sops would be withdrawn if the company fails to keep its word of providing 85% of its jobs to the localites, the minister asserted.

Houses for KHB staff
The cabinet has cleared the Karnataka Housing Board (KHB) proposal to build a housing complex for its staff at Vijayanagar at a cost of Rs22 crore. The housing complex would have 72 houses and a separate block with shopping and office space.

KIC office building
The long-felt need of Karnataka Information Commission to have its own office building received the cabinet nod on Friday with the grant of Rs17crore for the purpose. 

The building would be built on the vacant land between the Karnataka Public Service Commission (KPSC) office building and the multi-storey building, the minister said. 

The state government has also won the legal battle over land against Chamundeshwari Buildtech, the promoters of Eagleton Golf Village near Bidadi in Ramanagaram district.

The state government has decided to take back 55 acres of excess area allocated for the company earlier in accordance with the Supreme Court orders, the minister said.

The report submitted by Regional commissioner in 2011 after studying the land needs of the Golf Village project had recommended that the 208 acres had been allocated in excess of the need for the project, he added.

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