PM to release a master plan for investments in the Auto Industry
PM to release auto mission plan on 29th
TIMES NEWS NETWORK[ FRIDAY, JANUARY 26, 2007 02:54:57 AM]
NEW DELHI: Prime minister Manmohan Singh will officially release the final copy of the auto mission plan 2006-2016 (AMP) on January 29, which envisages an investment of $35-40 billion in the auto industry over the next ten years. The mission document is backed by the industry and the ministry of heavy industries.
The mission plan, which has been prepared by the ministry of heavy industries asks for a host of incentives for the auto industry so as to make India a hub for automobile industry. The plan asks for tax holidays for automobile sector investments of more than Rs 500 crore. It also proposes tax deductions of 100% on export profits and deduction of 30% of net income for ten years for new industrial undertakings.
One of the key recommendations of the plan is to introduce goods and services tax (GST) for the auto sector by 2009 when the entire country is expected to roll over into the GST regime. With the introduction of GST the sector is expected to benefit as it will entail a possible removal of other taxes such as octroi.
On the infrastructure front the plan proposes upgradation of port capacity so as to provide greater berthing facilities not only for cars and other four wheelers but also two-wheelers. The AMP also proposes the development of Mumbai, Chennai and Kolkata as auto hubs.
The AMP also promotes the idea of captive generation plants so as to meet the growing power needs of the sector, which are expected to triple over the next ten years from 1,990 mw to 6760 mw in 2015.
The minister heavy industries Sontosh Mohan Dev and the secretary R C Panda will represent the ministry at the event organised by SIAM and ACMA.
Too early to comment on daily realities when the GST rolls in
GOI should also consider having uniform tax rate throughout India for Petroleum products.Setting up more quality training institutes for creating human resource pool for the companies.And also building roads which could support the expected massive influx of vehicles.
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