Apollo Tyres to invest ₹525 cr for greenfield plant in AP

Apollo Tyres Ltd, which has entered into an agreement with the Andhra Pradesh government for a greenfield manufacturing plant, will get a host of concessions, including VAT/CST/SGST and power tariff rebate.

The tyre major, which had announced its decision in November 2016 about its move to set up a manufacturing unit in AP for two- wheeler tyres and pick-up trucks, is expected to invest about ₹525 crore on the plant in the phase one.

The State Investment Promotion Board (SIPB), which is chaired by State Chief Minister N Chandrababu Naidu, has approved reimbursement of 100 per cent VAT/CST/SGST for 20 years from the date of commencement of commercial production or up to realisation of 50 per cent of fixed capital investment, whichever is earlier.

Solomon Arokiaraj, Secretary, Commissioner Industrial Promotion, AP, in an order stated that Apollo Tyres had informed about its move to invest ₹4,025 crore over three phases with a potential to create 1,400 jobs, covering direct, indirect and outsourced, with the phase one investment of ₹525 crore and employment of about 450 persons.

Based on the application made by the company and various facilities sought, the SIPB considered them and decided to extend several concessions and ordered that subject to fulfilling ancillary criteria as per the State Automobile Policy, the ancillary units will also be extended similar benefits as that of the mother plant. Apart from 24x7 power supply and supply of 2,500 kl/day of water from Telugu Ganga through a pipeline, it will get various concessions as per the Industrial development policy of 2015.

This includes stamp duty and registration-related rebates.

The Andhra Pradesh Industrial Infrastructure Corporation had allocated 200 acres at Chinnapanduru in Chittoor district at ₹11 lakh per acre.

Apart from providing all necessary approvals within 15 days under the single window policy of the State from the date of submission of application, the company has been assured training cost reimbursement at ₹10,000 per person.

The company, which has plants in Kerala, Tamil Nadu and Gujarat, and overseas plants which it added through acquisitions, is seeking to further expand its manufacturing capability.

With South and Western India being a major automotive hub, the new plant will help cater to not just the rapidly growing demand in the local market, but be able to make use of the connectivity to export in the region.

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