The Karnataka government has decided to extend a slew of concessions and exemptions to Toyota Kirloskar Autoparts Export Oriented Unit coming up at Bidadi on the city outskirts.

The INR 230 crore export oriented unit will get stamp duty exemption for 17 acres of land given to it by the Karnataka Industrial Area Development Board on lease cum sale and entry tax on the plant machinery till May 2014.

The cabinet meeting also decided to extend 100% entry tax exemption on raw materials, barring petroleum products, procured by the company till 2017, after it commences production in 2014.

Minister for Law S Suresh Kumar told the press that taxes payable under Works Contract Act will also be exempted till 2014 and losses caused on this account will be reimbursed to the government by the Commerce and Industries department from its budget allocation.

Mr Kumar further noted that Karnataka had promised these incentives and concessions when the project was approved in 2002.

(Sourced from ET)