MP: State woos Japanese investors with tax sops, new township | indore | Hindustan Times
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MP: State woos Japanese investors with tax sops, new township

The Madhya Pradesh government has earmarked Rs 500 crore for building a “country-specific industrial township” on 1,200-acre land in Pithampur, a chunk of which has been reserved for Japanese investors, a senior official said.

indore Updated: Mar 09, 2016 19:00 IST
Manoj Ahuja
Japanese investors

The location of proposed 'country specific industrial township' in Pithampur that will house Japanese enclave. (Shankar Mourya/ Hindustan Times)

The Madhya Pradesh government has earmarked Rs 500 crore for building a “country-specific industrial township” on 1,200-acre land in Pithampur, a chunk of which has been reserved for Japanese investors, a senior official said.

A high-level delegation from Japan has arrived in the city to attend an investors’ seminar and visit the site of the proposed industrial township on Wednesday.

“The delegation comprises Ambassador Kenji Hiramatsu, Japan External Trade Organization (JETRO) DG Naoyoshi Noguchi, and representatives of 34 Japanese companies among others,” Audyogik Kendra Vikas Nigam (AKVN) Indore managing director Kumar Purushottam told HT. AKVN is the nodal agency for development of infrastructure in the industrial hubs.

Chief minister Shivraj Singh Chouhan, chief secretary Anthony DeSa and senior industry department officials are scheduled to attend the event in which officials will make a presentation on the proposed township and investment opportunities in the state.

The industrial township, about 35 km from Indore, will have world-class social infrastructure, including residential units, commercial units, educational institutes, medical units, banks, fuel stations, fire stations. It will be environment friendly with lots of open spaces.

“After the Jat agitation in Haryana, Madhya Pradesh has become an even more attractive investment destination because of its history of peaceful industrial climate. The Japanese investors have told us that they prefer to live as a group and in an ambience resembling home. They like to eat their own cuisine and would like their children to study in Japanese medium school,” an industry department official said requesting anonymity.

The government is offering special incentive packages to the Japanese investors including entry tax exemption for seven years, stamp duty exemption on leased land, and 100% VAT and central sales tax (CST) reimbursement for 10 years excluding the tax paid on raw material.

Experts say that infrastructure development will be the deciding factor. “Apart from industrial infrastructure, the key will be development of social infrastructure such as shopping complexes, schools and health centres,” CII MP council chairman Girish Mangla said.

Red carpet for Japanese bizmen

The state government has allocated Rs 500 crore for building a “country-specific industrial township” in Pithampur, a chunk of which has been reserved for Japanese investors

The proposed township will have world-class social infrastructure, including residential units, commercial units, educational institutes, medical units, banks, fire stations

The government is offering special incentive packages to the Japanese businessmen including entry tax exemption for seven years, stamp duty exemption on leased land, and 100% VAT and central sales tax (CST) reimbursement for 10 years.