Financial Daily from THE HINDU group of publications
Tuesday, Feb 14, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 14, 2006 |
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Corporate
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Taxation Government - Policy Radico gets export duty waiver for grain distillery in UP Our Bureau
New Delhi , Feb. 13 LIQUOR major Radico Khaitan Ltd has received exemption from export duty for three years for its upcoming grain-based distillery in Rampur, Uttar Pradesh. According to the company, it is the first to set up a grain-based distillery in Uttar Pradesh, and has been granted this tax relief on the recommendation of the Investment Promotion Board of the State. "We are happy to receive this exemption as it will further help us in our endeavour to compete in the US and European markets, where whiskies are make of grain, not molasses," the Chairman and Managing Director of Radico Khaitan, Mr Lalit Khaitan, has said. The EU has insisted that the whisky nomenclature be given to only those products made out of grain, thus ensuring that Indian whiskies made from molasses are not allowed into Europe for sale under the category. Conditions for exemption: The exemption from export duty is subject to the generation of minimum revenue of Rs 50 crore by the distillery for each of the three years. Export duty relief will be renewed every year for the next three years to ensure that the company is generating the minimum revenue of Rs 50 crore as excise duty. In the case of shortfall in minimum revenue, the relief from export duty will be reduced proportionally. The Rampur distillery will produce 270 million bulk litres of portable alcohol. The issuance of the licence for the grain-based distillery of Radico Khaitan, followed the approval of the new policy for the distillery sector by the Uttar Pradesh Government in August last year. Radico Khaitan Ltd reported a turnover of Rs 995 crore for 2004-05.
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