Honda Motorcycle & Scooter to get refund on tax for 15 years

The Gujarat state government today informed the state assembly that Honda Motorcycle and Scooter India would get an array of benefits, including refund of net tax paid by it for 15 years, for its manufacturing plant at Vithalapur village in Ahmedabad district.

The revelation came during question hour on the first day of the Gujarat Assembly session on Monday. Congress MLA from Viramgam Tejashree Patel sought details from the Gujarat government about the agreement signed between the state government and Honda Motorcycle and Scooter India (HMSI) about benefits given to the company's upcoming plant by the state.\

Gujarat Chief Minister Anandi Patel who handles the industries portfolio, told the House in a written reply that the Gujarat government has signed a 'State Support Agreement' with HMSI for a proposed investment of Rs 1,100 crore for the plant.

In her written reply, she said that under the agreement, the Gujarat state government would waive off stamp duty and transfer charges on land bought by the company for the plant. The Gujarat government has decided to give full waiver to the company on electricity duty for five years and a refund on net tax paid by company for 180 months (15 years), her reply said.

On September 30, when the agreement was signed, it was announced by the Gujarat government that HMSI would invest Rs 1,100 crore to set up its plant at Vithalapur to churn out 1.02 million two-wheelers from this facility.