Hyderabad : Pitti Engineering Ltd., leading engineering company, had invested Rs. 160 crore at Aurangabad for setting up state of the art fully automated facility, under Package Scheme of Incentives (PSI), 2013 by Government of Maharashtra for industrial incentives and benefits. Consequent to setting up of the facility at Aurangabad, Government of Maharashtra had declared the project as Mega Project.
Company has received an approval for Rs. 21.66 crore incentives, out of which Rs. 16.25 crore has been sanctioned for the period from 1st April, 2018 to 31st March, 2020. The remaining amount of Rs. 138.34 crore would be received in due course are per agreed terms and conditions between the government and company.
The incentives received by the company add directly to Profit before Tax and will increase profitability of the company. This would also increase the cash flow availability for the company’s expansion and working capital purpose, which would in turn contribute for overall growth of the company.
Commenting on the development, Mr. Akshay Pitti, Vice Chairman and Managing Director, said that, “We are very delighted to receive an approval for Rs. 21.66 crore incentives, out of which Rs. 16.25 crore is sanctioned from Government of Maharashtra for our Mega Project investment at Aurangabad. This would boost our overall cash flows available for expansion and working capital purpose and contribute to overall growth of the company.”
He further added that, “these incentives are going to add to our regular profits on a yearly basis for the next five years.