Asian Paints Ltd has decided to revise the capacity of the proposed manufacturing unit for paints and intermediaries in Visakhapatnam district of Andhra Pradesh.
The company re-looked at its product portfolio to be manufactured at the plant and decided to raise its capacity to 5,00,000 kilolitres from 4,00,000 kilolitres per annum, to be developed in phases, it informed the BSE.
The approximate investment, in phases, over 12 years from the date of commencement of construction, including the cost of land, would be ₹1,785 crore as against its earlier announcement of ₹1,750 crore.
In March 2015, the Asian Paints management had entered into a memorandum of understanding with Andhra Pradesh to set up a manufacturing facility for paints and intermediates at Pudi Village, Rambilli Mandal of Vishakhapatnam district.
The Andhra Pradesh government incentives for the plant include reimbursement of 100 per cent Gross VAT/State Goods and Services Tax (SGST) for 12 years starting from the date of commercial production.
This is subject to an overall cap of 100 per cent of eligible investments and the company achieving 70 per cent of the proposed investment of ₹1,750 crore within five years.
Total reimbursement will be scaled down to the extent of concessions (other than accelerated depreciation), if any, offered by the Centre.