11 mega projects to get 50% VAT back

The Andhra Pradesh government has decided to reimburse 50 per cent value added tax (VAT) for 11 mega projects coming up in the state at an investment of Rs 13,319 crore.

The decision was taken on Wednesday at a review meeting of the State Investment Promotion Board (SIPB), chaired by chief minister YS Rajasekhara Reddy.

Disclosing this to the media, major industries minister Kanna Lakshminaraya said these projects would provide employment to about 50,000 people. Some of them have already gone into production, he said. Apart from reimbursing VAT, these projects would also be eligible for other incentives given by the SIPB.

Officials said 14,911 units came up during 2004-09 and created employment for 338,587 people with a total investment of Rs 27,393 crore.

A new industrial policy would be formulated as the existing one would expire in March 2010. The officials said 245 mega industries were in different stages of implementation with an investment of Rs 2,47,214 crore and these would create employment for 1,5,694 people.