VAT refund for Ford, 15-year loan for Peugeot

Stamp duty waiver and exemption from registration charges are among the benefits provided to Ford India and PSA Peugeot by the state government.

The state government had so far refused to divulge the exact nature of benefits and incentives provided to the two automobile majors, which have announced plans to set up manufacturing plants at Sanand at an investment of Rs4,000 crore each.

However, the government disclosed the information in response to a question in the assembly.

In a written reply, minister of state for industry, Saurabh Patel, said that the state government had signed state support agreements with Ford India and PSA Peugeot for facilitating their investment plans.

Patel said that both companies had been given exemption from payment of stamp duty and registration charges.

"In addition to these benefits, Ford would get a refund of the VAT amount paid by it over 15 years, while VAT paid by PSA Peugeot would be converted into a 15-year loan," Patel informed the assembly.

He, however, clarified that these benefits to Ford and PSA Peugeot would have a maximum limit of the investments made by them.
In response to another question, the minister said that discussions were going on with Maruti Suzuki India Limited, which has announced plans to set up a car plant at Bechraji, for incentives. The company could invest up to Rs6,000 crore for a 10-lakh car per annum plant.

"Incentives as per the existing policies are under consideration of the state government for Maruti Suzuki," he said.