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Asian Paints Ltd has decided to revise its plans for the proposed manufacturing unit for paints and intermediaries in Visakhapatnam district of Andhra Pradesh.
The paints major has informed BSE through a regulatory filing that the company re-looked at its product portfolio to be manufactured at this plant and has decided to revise its plans of setting up of the plant with a maximum capacity of 5,00,000 kiloliters per annum.
The approximate amount that would be invested by the company in phases over a period of 12 years from the date of commencement of construction, including the cost of land, would be Rs 1,785 crore as against its earlier announcement of Rs 1,750 crore for 4,00,000 kilolitres made in March 2015.
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 intermediaries at Pudi village, Rambilli mandal of Vishakhapatnam district, Andhra Pradesh.
The company had then stated that approximately Rs 1,750 crore would be invested in phases for a capacity of 4,00,000 kiloliters per annum in phases over a period of 12 years from the date of commencement of construction, including the cost of land of 110 acres, subject to due diligence and obtaining necessary regulatory and other approvals.
The Andhra Pradesh Government has offered a number of incentives for the plant, which include, reimbursement of 100 per cent Gross VAT/State Goods and Service Tax (SGST) or similar levy of taxes in the State for a period of 12 years starting from the date of commercial production.
This is subject to an overall cap of 100 per cent of eligible investments and that the company achieves 70 per cent of the proposed investment of Rs 1,750 crore within a period of five years.
Total reimbursement would be scaled down to the extent of concessions (other than accelerated depreciation), if any, offered by the Centre. In addition, the company was offered all other incentives as per the Andhra Pradesh Industrial Investment Promotion Policy 2010-2015.
The company shares ended down by 1.18 per cent at Rs 980.20 on the BSE.
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