Panipat cluster receives central assistance

6,000 units to benefit in Panipat, Faridabad, Gurgaon

The development of industrial clusters at Panipat, Faridabad, and Gurgaon under the Industrial Infrastructure Upgrade Scheme of the Centre will benefit more than 6,000 small, medium and large units of Haryana.

Under this public-private partnership model of industrial development, the central government will fund 75 per cent of the cost of the package, and the state agencies and local industries 15 per cent and 10 per cent, respectively.

According to Haryana's director of industries, D R Dhingra, the Panipat textile cluster has received an installment of Rs 13.74 from the central government.

Earlier, the state government had sought assistance of Rs 150 crore from the Centre (Rs 50 crore for each cluster). A scientific instrument industry in Ambala is in the pipeline. This industry of Ambala was earlier internationally acclaimed, but of late it has been losing its market share due to obsolete techniques and lack of infrastructure.

The state government is also contemplating bringing about industrial clusters in Rohtak and Hissar, which are known for exporting fastners and steel, respectively.

The scheme will be implemented by the local entrepreneurs through a special purpose vehicle. The state government will give administrative support to the SPV. The estimated cost of the Panipat cluster is Rs 54 crore and about 3,000 units are expected to gain.

Besides the upgrade of infrastructure, a water-recycling facility and a sewage and effluent treatment plant will come up at the Panipat cluster. This cluster registered exports of about Rs 2,000 crore in 2004-05.

Dhingra told Business Standard these three were the largest clusters in the state and had made combined exports of about Rs 5,300 in 2004-05. He said a long-standing demand of the entrepreneurs had been met, and now they would have to offer quality products at competitive prices to sustain in the international market.

The proposed cost of the Gurgaon cluster is about Rs 65 crore. The 1,500 units of this cluster registered exports of about Rs 1,800 crore last year. The Gurgaon cluster project will take off in synergy with the Auto Component Manufacture Association.

With an estimated cost of Rs 73 crore, the light engineering cluster project of Faridabad will cover about 2,800 units. It clocked an export turnover of about Rs 1,500 crore last year.

In the Faridabad and Gurgaon clusters, hi-tech facilities like vibration testing, shock testing and radiography will be introduced.