Mahindra asks Maharashtra govt to keep its promise on incentives

According to reports, Mahindra has censured the move of the Nashik Municipal Corporation that has withdrawn octroi concessions granted to it lately besides it also criticized that the Maharashtra government has also taken back the tax rebates to the new investors. Recently, earlier this week the Nashik Municipal Corporation had withdrawn tax rebates to the M&M terming that the corporation is reeling under economic crisis.

In another setback to the SUV maker, the corporation had denied payment of Rs 25 crore VAT refund for the period of 2000 to 2009 to Mahindra. The Corporation had promised to refund as per the agreement it entered into with Mahindra while setting up the Nashik plant. Similarly, the state government also changed the VAT set off rules earlier this year and due to which the refund payment to the companies was deferred.

In a statement, Mahindra has reportedly asked the Maharashtra government to keep its promise which will be an incentive for car makers. He further said that car companies have made plans to setup units in Maharashtra based on the rebates and concessions promised by the government and a change in the policy midway would adversely affect their future plans.

Notably, all the three car makers Mahindra, Volkswagen and General Motors have set up their car manufacturing units in Maharashtra following the promises by the government and the three car makers have invested around Rs 10,000 crore.