The company has organised a ground breaking ceremony on February 10 at theproject site which is located on the Nashik-Trambakeshwar road. The projectwill see manufacture of 20,000 vehicles in the first year.

The break up of the proposed Rs 800-crore Scorpio project is as follows :Nashik (400 acres of land)-Rs 660 crore (M&M-Rs 530 crore, investment byinternationally renowned systems suppliers/vendors-Rs 60 crore andindicative value of assets taken on lease-Rs 70 crore), Igatpuri-Rs 80crore, Kandivli/Pune-Rs 60 crore. The company expects to provide directemployment to about 500 people and indirect employment to over 60,000.

The state government has decided to grant the incentives collectively forthe Nashik project site. Interestingly, for this purpose, the government hasamended its government resolution (GR) on the sales tax concessions for themega project and accordingly a new investment slab of Rs 450 crore or morebut less than Rs 600 crore was included in it. The Rs 530 crore investmentby M&M in addition to the Rs 70 crore of lease amount fits into the newlyincluded slab.

The Scorpio project will be entitled to get incentives under the PackageScheme of Incentives, 1993, which had come to an end from January 1, afterthe introduction of uniform floor rate of sales tax.

M&M will get 120 per cent sales tax concessions for 14 years. However, thisfacility will be extended by nearly two years if it does not reach themonetary ceiling in 14 years.

Octroi refund has been granted for 14 years on the new product and itsaggregates, parts manufactured for Scorpio range of vehicles, at otherlocations of M&M including Kandivli.

The state government has assured grant sales tax vouchers for the purposeof octroi refund as it involves much time following the budgetaryallocations.

The government has assured repayment of 50 per cent electricity duty valuedat Rs 4.12 crore.