Auto cluster institute in Pune soon

The country's first Auto Cluster Development and Research Institute will soon come up at MIDC Chinchwad. The bhoomipujan of the proposed site for the institute was performed by Union Agriculture Minister Sharad Pawar today.

Pawar said the local administration should also look forward to establish special economy zones (SEZs) in Pune and Pimpri-Chinchwad.

The institute will have a pre-production development facility for automotive and component industry. It will also be equipped with testing laboratories for plastic, polymer and various auto parts.

"The institute, spread across nine and a half acre, will have a 65,000 sq ft multi-purpose building and a 38,000 sq ft exhibition hall," said Ajay Dua, secretary, department of industrial policies and promotion.

On the auto cluster, Dua said it is a Rs 67 crore project. Out of this Rs 50 crore would be funded by the central government, while the rest would come from the Pimpri- Chinchwad Municipal Corporation (PCMC).

"The cluster will help small scale industries in automotive and auto component sector. At present auto components' export is growing at 60 per cent and production is increasing at 20 per cent. The country can reach production level of $25 billion within ten years as per reports. We have approved three such clusters. While one is the Pune Auto cluster, the other two would be in Pithampur (MP) and Vijaywada (AP)," he added.

"Global companies are under cost pressure and are looking for outsourcing the components worth $375 billion by 2015 and India can tap at least $25 billion out of that. We are expecting the Pune cluster to generate a business of around $8 billion and will create an employment opportunity for about 10 lakh people. It will be able to attract an investment of approximately one crore from global companies," said Baba Kalyani, chairman, Bharat Forge Ltd.

"With the cluster and research institution, we could expect the exports to go up at least thrice within ten years," said Ravi Pandit, chairman, Mahratta Chamber of Commerce, Industries and Agriculture.

AUTO MOTIVE

The cluster is expected to generate a business of around $8 billion

The auto cluster institute will have facilities such as pre-production development, testing laboratories