By IANS
Jaipur : The Rajasthan government has offered a host of concessions to Honda Siel Cars India Ltd (HSCI), which is setting up a new manufacturing facility in Alwar district with an initial investment of over $230 million.
While providing sops to the company, the state government said in various notifications that it has decided to offer a 50 percent exemption on electricity duty, a lower central sales tax of 0.05 percent with respect to the sales of cars, sub-assemblies, spare parts and components manufactured by the company in Rajasthan.
According to a long-term plan unveiled a few months ago at the time of signing of a memorandum of understanding (MoU) between the Rajasthan government and HSCI, the new project will be spread across 600 acres and will have an initial production capacity of 60,000 units per annum.
In addition to the car manufacturing facility, which will be spread across 400 acres, the new project will also have several supplier units, spread across an area of over 150 acres.
The planned capacity of the plant is likely to go up to over 200,000 units per annum with investments of up to $460 million in the future. The plant is scheduled to roll out its first car by the last quarter of 2009.