Ford, Peugeot get tax exempt to build plant in Gujarat

The Gujarat Government recently waived stamp duty and registration charges for car manufacturing companies Ford and Peugeot, for setting up their manufacturing units in Gujarat. Minister for State of Industries Gujarat said that additional tax benefits will be given to Ford and Peugeot, like refunding the Value Added Tax paid by the company for next fifteen years. The minister also added that the government has already signed the agreement of state of support with Ford and Peugeot. Indian car giant Maruti has also made proposals to set up a manufacturing plant in Gujarat, the Gujarat government is still considering the proposal. Ford has invested about 49 billion Indian rupees for construction of its new manufacturing plant in Gujarat.

The first engine and vehicle from this new unit is expected to rollout in the year 2014. Ford facility center is located at Sanand which is 70 kilometers away from state capital. The new unit will create 5000 jobs for the people living in and around Sanand. The Ford facility center will have the capacity to produce 2.4 Lakh vehicles and 2.7 Lakh engines per year. Peugeot also has plans to produce 3,40,000 units by 2016. The French car maker’s facility is being built at Sanand. Gujarat government is inviting many companies to setup their manufacturing units in Gujarat which would generate employment opportunities in the state and bring added benefits to the state and country.