The Hindu Business Line : TVS Motor to decide on plant in north India soon

TVS Motor Company is likely to take a decision on the location of its plant in north India at its forthcoming board meeting on February 24, it is learnt.

According to sources, the company is looking at two States — Uttaranchal and Himachal Pradesh — but the latter is more likely.

TVS Motor has two plants, both are in the South, at Hosur near Bangalore and Mysore. The company therefore finds merit in a north India manufacturing base.

But another reason is the tax incentives (mainly excise duty exemption) given by the Centre for units set up in Uttaranchal, Himachal and J&K, under a special scheme for the development of the States.

Asked about the probable size of the investment, Mr Venu Srinivasan, Chairman and Managing Director, TVS Motor, said that the contours of the north India plan would be decided only at the board meeting.

The company in a `budget expectation statement' has called for extension of the incentives given for R&D activities.

At present, the auto industry is eligible for weighted reduction of 150 per cent on expenditure incurred in R&D facilities.

This scheme should be continued for further period of 5 years, the company has said.

It has also asked for import duty on raw material and components to be reduced to and capped at 10 per cent.

The company has further demanded DEPB benefits for two wheeler manufacturers to continue into 2005-06.

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