| "It will be expanded further to a capacity of 8,900 metric tonnes per annum by December and 28,350 metric tonnes per annum by December 2007," said an industry source, whose version was confirmed by a senior government official. |
| "The company has put up a proposal for expansion at Madhya Pradesh Trade and Felicitation Corporation (TRIFAC) with a plan to expand the capacity to 28,350 metric tonnes per annum by 2007," said the official. |
| The firm has a clientele base in automobile industry including Eicher Motors, L7T Case Equipment, Man Force and Gajra Gears etc. for its products. |
| "The firm has also asked for sops and concessions like interest subsidy, land area on concessionary rates and investment promotion assistance. The new investment will create 530 new jobs," said the official adding, "the Empower Committee on Investment will soon discuss the proposal." |
| According to an estimate provided by the industry source, the auto component manufacturers in Pithampur, some 30 km away from Indore, are looking up. |
| "Keeping in view the coming up of world-class auto testing track and a Rs 50 crore Auto Cluster in Pithampur, the auto component industry of Rs 550 crore has set its target at Rs 1,500 crore for the next five years," said an industry source. |
| According to the source, the Pithampur units are established under the mother unit license system where in they get 50 per cent of the component supply from ancillary units. |
| "Roughly, the order placement will not be less than Rs 1,500 crore from Madhya Pradesh," said an industry source. |
| However, value added tax (VAT) is also creating problems for the automakers. Some unit holders told Business Standard that input purchased by the units, exempted from VAT, within the state of Madhya Pradesh are now taxed. |
| "This has increased the cost of production. We will have to talk to the chief minister in this regard," some of the automakers said. |
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