Companies

Pitti Engineering expects ₹160 cr state incentive

Our Bureau Mumbai | Updated on July 12, 2021

Akshay Pitti, Vice Chairman and Managing Director, Pitti Engineering

Gets approval for ₹22 cr on its mega project at Aurangabad

 

Pitti Engineering will receive the mega projects investment incentive of ₹160 crore from Maharashtra government on completion of its modern fully automated facility at Aurangabad.

It has received the approval for the first instalment of ₹22 crore incentive, out of which ₹16 crore was sanctioned for April, 2018 to March, 2020. The remaining ₹138 crore would be received in due course as per agreed terms.

The company has availed the incentive under Package Scheme of Incentives, 2013 by Maharashtra government for industries and invested ₹160 crore in the modern facility at Augurangabad. Consequent to setting up of the facility, the State government had declared the project as Mega Project.

Mega Project scheme

Under Mega Project scheme of the State government, incentives are sanctioned in equal annual instalments subject to the annual gross SGST paid over 7-9 years, cumulatively not exceeding 100 per cent of eligible fixed investment by the company. Following this, Pitti Engineering will receive the entire investment of ₹160 crore over a period of time.

The incentives received will add to profit before tax and will increase profitability of the company, said in a statement on Tuesday. Akshay Pitti, Vice-Chairman and Managing Director, said the incentive would boost overall cash flows available for expansion and working capital purpose besides contributing for overall growth of the company.

Future incentives are going to add to profits on a yearly basis for the next five years, he added.

The company is the largest exporter of electrical steel laminations from India. It also manufactures sub-assemblies for motor cores, generators, die-cast rotors and machining of metal components.

Published on June 15, 2021

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