Peugeot and Ford offered tax exemption for building manufacturing plants in Gujarat

In its continued commitment towards boosting industrial growth in the state, the government of Gujarat has waived off stamp duty as well as registration charges for the car making giants Peugeot and Ford thereby creating a positive atmosphere for both the companies to record their presence in the state. The Industrial Minister of State in Gujarat has also announced that the state government is going to provide further tax benefits to Peugeot and Ford, which is going to include refunding the VAT that the companies are going to pay in the upcoming fifteen years. It has also been disclosed by the minister that an agreement has already been signed by the state government extending support to Peugeot and Ford. The leading car manufacturer of India, Maruti Suzuki has also asked permission from the Gujarat government for establishing a manufacturing unit in the state. The state government in Gujarat is considering this proposal as of now. It is reported that Ford has made an investment of Indian Rupees 49 billion in order to construct this car making unit at Gujarat.

Ford and Peugeot get tax exempt to build plant in GujaratIt is expected that the new unit is going to deliver its first vehicle and engine by 2014. This facility center of Ford has been established at Sanand, which is located at a distance of 70 kilometers from the state capital. This new manufacturing unit is expected to generate around 5000 new jobs for people based in Sanand and its nearby areas. It is expected that this facility center is going to be blessed with the capacity of producing to the tune of 2.7 lakh engines AND 2.4 lakh vehicles annually. Peugeot is also making plans of producing around 3.4 lakh vehicles by the year 2016. The car maker from France is also setting up its manufacturing unit at Sanand. It needs to be added that the state government in Gujarat is continuously inviting various companies to establish factories in the state. This is being done with the aim of generating further opportunities of employment in Gujarat, which is going to benefit both the state as well as the country.

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