The state Cabinet on Friday approved the setting up of a Pepsico plant, a project at Mendipathar Industrial Area in North Garo Hills District. Chief Minister Conrad K Sangma said the project proposal was given by Varun Beverages Limited, a company that runs the Pepsico plants as the state government has put a condition that 90% of the non-managerial staff has to be local.
Speaking to Mediapersons, the Chief Minister said, this is a proposal of Rs 200 crore plant in terms of the pepsi products and additional Rs 100 crores investment in terms of fruit pulp and fruit juice investment in the same campus.
“This is a proposal of a total of Rs 300 crores of investment. The plant is proposed to set up in Mendipathar industrial area North Garo Hills and the cabinet decision was to clear the customized incentives, which as per the Meghalaya Industrial Policy of 2024, we have provision that invest over Rs 100 crores, certain special incentives can be given and this is again in line with what many other state governments has done,” he said.
“So in this line we have decided our support this particular customized incentives as per the policy of the state government and in this an amount close to 30% more capital investments subsidy which they had requested over and above the normal amount that is given, another additional amount of 30% more is being added to that capital subsidy. So the Rs 7.5 crores is a capital subsidy and an additional Rs 5 crores is being proposed where the demand from the company was about close to Rs 40 crores of investment, they had asked for capital investment, but it’s been reduced to Rs 5 crore,”Sangma added.
Stating that the government has agreed to provide 2% interest subvention, the CM said, “At the same time the GST amount that is there which normally there is a reimbursement of the GST again it is in line with the UNNATI scheme and also with the schemes from other state governments where they reimbursement was asked for about 300%. We have reduced that and we have agreed to a 200% investment or return of the SGST tax collision that takes place, in other states the amount goes up to even 300%, so we had bought it down to 200%.”
Commenting on the condition laid by the state Government, the CM said that 90% of the non-managerial staff has to be local.
“And for managerial staff, within the next two years, they will have to have minimum of 50% of managerial staff also locally from the state, starting from with 25% in the first two years but after two years 50% of the managerial staff also has to be local,” he said. He said “So these were the conditions that were put by the state government and also as I said the condition that a plant should also be put up to support the local produce and other locals products to helps the farmers.”
Asked, the CM said the plant is expected to generate a minimum of 500 direct and indirect employment opportunities for local people in the region.