Under the policy, there are two categories for entrants; first for 'greenfield investments' relating to the installation of new automotive assembly and manufacturing facilities and the other for 'brownfield investment
' to revive an existing assembly or manufacturing plant that was non-operational by July 1, 2013.
Ministry of Industries awarded Brownfield investment
status to Dewan Farooq Motors Limited (DFML).
The government has offered incentives of Greenfield investment to the company despite its status of Brownfield investment
, which is certainly against the spirit of existing automotive development policy.
Ghandhara Nissan has recently been awarded Category-B 'Brownfield Investment
Status' by the Ministry of Industries and Production for the revival of its existing assembly facility.
As a result, EDB and Board of Investment (BoI) suggested placing Ghandhara Nissan's investment plan as a Brownfield investment
under the new auto policy of 2016-2021.
Under the "Brownfield investment
Status" the Ghandhara Nissan will import parts and components which are not available in Pakistan at 10 percent import duty for three years, and those available in Pakistan will be imported at a rate of 25 percent duty.
According to officials the move has been made possible after government under Auto Policy 2016-21 facilitated the company with Brownfield Investment
As in previous quarters, greenfield investment outstripped brownfield investment
, and increasing M&A signifies growing investor confidence, said the quarterly EY 'Power transactions and trends' report.
The report found more than 300,000 UK jobs are now supported by the sector, and that production has increased by 16% since 2014, driven by production efficiency improvements, brownfield investment
and new field startups.
According to Brownfield Investment
revival of an existing assembly and manufacturing facilities, that is non-operational or closed on or before July 1, 2013.
It is a Brownfield investment
of NYSK Holding, a company from the USA.
However, in line with the Auto Development Policy (ADP) 2016/21, the additional Customs duty mentioned above will not be charged on sub-components and components, imported in any kit form, by an assembler or manufacturer declared to be an investor under Category - A "Greenfield Investment" for a period of five years and under Category - B "Brownfield Investment
" for a period of three years, for assembly or manufacturing of the vehicles.