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AP industrial clusters to get Rs 132 crore facelift

Centre to chip in Rs 93 cr as grant for upgrading pharma, auto component clusters

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B Dasarath Reddy Hyderabad
Last Updated : Mar 18 2013 | 9:25 PM IST
The bulk drug and pharma manufacturing cluster in Hyderabad and the auto components cluster in Vijayawada are soon to get a Rs 131.89 crore facelift in terms of infrastructure, under Government of India's new Industrial Infrastructure Upgradation Scheme(IIUS).
 
The proposals for the upgradation and development of the infrastructure in these two clusters is now at the final stages of approval and is expected to come through in the next two weeks. Out of the total proposed project cost, the Government of India is expected to provide Rs 92.86 crore as a one time grant.
 
"The final appraisal of the two proposals are slated in Delhi on 26 February. Once that is over, the government is expected to sanction the schemes immediately," said Sameer Sarma, commissioner of industries. The two projects are slated to start in the current financial year and take a couple of years to finish.
 
This is the first time that Andhra Pradesh is going to benefit from this new scheme. The Government of India had proposed the scheme with a provision of Rs 675 crore for the tenth plan period under which 20-25 clusters would be developed across the country in the initial stage.
 
The pharma and auto component clusters are part of the initial batch of industries that had been identified by the government under the scheme. The scheme was introduced after studies on global competitiveness for some selected sectors of the Indian industry.
 
The studies had shown that among others, the factor inhibiting the growth and the competitiveness of industries was inadequate industrial infrastructure.
 
As per the Government of India guidelines, a special purpose vehicle (SPV) for each cluster is to be formed with stake holders, financial institutions and government representatives on its board.
 
The beneficiaries will have to contribute a minimum of 15 per cent of the total project cost, while the rest would be mobilised through borrowings from financial institutions.
 
The pharma cluster which is spread across Hyderabad and the neighbouring Medak and Ranga Reddy districts will get a Rs 50 crore grant from the centre under the scheme.
 
A F Ferguson and Co., the project consultants, in consultation with the state industries department, have prepared the proposals with a total estimated cost of Rs 74.66 crore for the pharma cluster.
 
The important works identified under IIUS in the pharma cluster include upgradation of the incinerator and multiple effect evaporator at the Patancheru Effluent Treatment Plant and the Jeedimetla Effluent Treatment Plant, a new common testing facility, a common pilot plant facility, roads and water chains. Funds are also earmarked for legal and technical consultancy, trade promotion and brand building.
 
The upgradation project of the auto component cluster at Vijayawada is expected to Rs 57.23 crore of which Rs 42.86 crore will be given as grants by the Government of India.
 
APITCO (Andhra Pradesh Industrial and Technical Consultancy Organisation) has prepared the project report and has also identified the work to be taken under the present scheme.
 
Development of roads, provision of storm water drains, water supply provision, a sewerage scheme, environmental management facility, quality control and common testing facilities, capacity building, skill development, technical upgradation and development of raw material bank, design center, critical common machinery center with high precession engineering equipment will be taken up with these funds at the cluster in Vijayawada.
 
The SPVs of respective clusters will carry out the development, operation and maintenance of the infrastructure facilities created in these locations.
 
This arrangement will also ensure the creation of useful assets and sustainability of assets created through an appropriate revenue generation mechanism, according to sources.
 
The basic objective of the IIUS is to enhance the international competitiveness of the domestic industry by providing quality infrastructure through the public-private partnership approach.

 
 

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First Published: Feb 23 2004 | 12:00 AM IST

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