State doles out sops to Honda plant in Kolar

BANGALORE: To attract new investment in addition to retaining earlier investors, the state government has decided to dole out several sops to the Honda Motorcycles and Scooters Limited which plans to establish a   1.8 million capacity two-wheeler plant at Narasapura in Kolar district.Minister for Law and Parliamentary Affairs Suresh Kumar informed here on Friday that Honda Motors is expected to invest over Rs 1,300 crore in the project that is expected to generate as many as 3,500 jobs. The minister said that among other sops, the company would receive conversion of 40 per cent of a portion of VAT as an interest free loan for ten years and reimbursement of 95 per cent of the total Central Sales Tax (CST) payable annually to the company.