100 Taiwanese companies to join CDC park

Taiwan’s Century Development Corporation (CDC) has finalised plans to develop an industrial park on a 70-acre site near Aerospace park in Bengaluru.

It has leased land from Karnataka Industrial Area Development Board at Devanahalli for accommodating 100 Taiwanese companies, making it the largest single foreign business community set to move into India in recent years.

The CDC will start Phase I with Rs.740 crore investment on infrastructure, such as electronic waste processing centre and common amenities.

India, Vietnam and the Philippines top CDC’s Asian expansion list, according to posting on the industrial park developer’s website.

CDC was founded in 1993 by Taiwan’s Ministry of Economic Affairs.

Its development includes Nangang Software Park project in Taipei and the Subic Bay Gateway Park in the Philippines.

Work on the park is expected to start in the fourth quarter of this year, according to sources at Taiwnese industries, which are planning to venture into the Indian market in batches led by main manufacturers and supported by specialist vendors.

CDC could invest another Rs.2,300 crore on Phase II, adding another 130-acre park in about five to six years, depending on the success of the Phase I.

The Taiwanese are keen on setting up export-oriented industries in a low-cost environment but would seek tax incentives as is the norm for such investments, said the sources in Taipei.

“The huge domestic market and export potential makes India an attractive place to expand. But we want lower taxes, perhaps pioneering status with 10% tax for first five to 10 years of operating business,” said a source at a leading Taiwanese manufacturing house. fii-news.com