Automobile and Auto Components Policy 2015-2020
Key Highlights
- Isuzu Motors’ pick-up truck manufacturing facility operational
- Presence of Amara Raja group, India’s second largest Automotive battery brand
- Upcoming tyre manufacturing facility by Apollo Tyres
- Presence of more than 100 automotive and auto-component manufacturers
- Planned auto clusters in Nellore and Chittoor districts
- Multiple world-class Automotive Suppliers’ Manufacturing Centres (ASMCs) to be set
up
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Automobile &
Auto Components Policy
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Key Policy Targets 2020
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Key Initiatives
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Automobile Industry declared to be Public Utility under the Industrial Disputes Act 1947
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Quality Testing cum R&D laboratories to be set up in collaboration with leading global institutions
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Land to dependent ancillary units at the same rate as to OEMs subject to conditions
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Major Clusters / Parks
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Multiple world-class Automotive Suppliers Manufacturing Centres (ASMC) on a PPP basis. These centres are industrial parks dedicated to auto component manufacturers
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2 major Auto Clusters (apart from the ASMCs mentioned above) in districts of Nellore and Chittoor
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Auto Components cluster in Vijayawada
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Key Fiscal Incentives
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Incentives
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Description
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CAPITAL SUBSIDY
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Capital subsidy for Auto Clusters and ASMC developers – 50% of fixed
capital investment in building and common infrastructure (maximum of ₹20 crore)
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PATENT COST
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75% reimbursement, subject to a maximum of ₹25 lakh
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QUALITY CERTIFICATION
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50% reimbursement, subject to a maximum of ₹5 lakh for MSME units
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INTERNATIONAL FAIRS
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50% reimbursement of cost of participation in international fairs upto ₹5 lakh
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Special Incentives for Mega Integrated Projects:
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VAT/SGST/CST
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100% CST reimbursement for 10 years or GST regime, whichever is earlier
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Gross VAT/SGST reimbursement on sale of finished goods for 20 years, or 150% of capex spent in first 7 years, whichever is earlier
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Concessional VAT/SGST rates on input & capital goods @ 5%, and reimbursement of state VAT/SGST of input credit for 20 years
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75% reimbursement of Gross VAT/SGST for 10 years from the date of commercial production,or 100% of capex spent in first 7 years, whichever is earlier
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OTHER TAXES AND DUTIES
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No entry tax and octroi duties; reimbursement of stamp duty, transfer duty
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WATER SUPPLY
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50% of the price of existing industrial supply tariff for the initial 5 years
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Existing Partners
Upcoming projects