Auto ancillary units in Gujarat will be the biggest beneficiaries of the progress of automobile sector in the state and upcoming automobile projects, stated Saurabh Patel, minister for energy and petrochemicals.
He also said that any company wanting to set up plant in Gujarat and avail VAT exemption, will have to source auto parts from the ancillary units located in the state.
"Our auto ancillary units will be the biggest beneficiary of the new upcoming automobile projects in the state," Patel said.
"We welcome all auto companies to set up plants in Gujarat. But they will have to buy auto parts from state's auto ancillary units to take the benefit of exemption on Value Added Tax (VAT)," he said at the inauguration of Auto & Agro Expo 2013 in Vadodara on Thursday.
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The exemption is currently enjoyed only by venture capital funds, and other AIFs such as hedge funds