LG Project In Sri City Given Several Incentives

Vijayawada: LG Electronics Private Limited, which is investing over Rs 5,000 crore in Sri City in Tirupati district for setting up manufacturing of home appliances and consumer durables has been given several incentives. The State Government has issued orders to this effect, seeking the grounding of the project next month.

The land acquisition and approvals will be completed in December and work on construction will start in the New Year. The project will be completed in four years.

The government accorded permission to APIIC to proceed for acquiring 188 acres under LA for others and subsequent transfer to Sri City on actual cost basis. LG Electronics has been asked to complete the total project investment of more than Rs 5,000 crore within four years.

Considering LG investments to be a mega Investment of more than Rs 5,000 crore to be invested over a period of four

years and its potential to bring ancillaries and create an ecosystem for white good manufacturing in the government has decided to give incentive of 100% of total investment over a period of 20 years as recommended by the Industries Department.

The incentives include waiver on stamp duty and registration fees, 100% subsidy for water consumption for 20 years (Rs.65

/KL), SGST refund on construction work, 00 per cent exemption from electricity duty for 20 years and 50 per cent subsidy for electricity tariff for 20 years. Rs6,000 per month per worker as skilling subsidy for five years will also be offered along with capital subsidy for 20 years to recoup 100 per cent incentives.