Pithampur auto cluster gets Rs 6 crore locally

Amid unconfirmed reports that the Centre wants its contribution returned, local industrialists have contributed Rs 6 crore to the special purpose vehicle created for the Pithampur Auto Cluster Ltd (PACL).

The cluster has been formed under a Union government scheme called the Industrial Infrastructure Upgrade Scheme, launched by the department of industrial policy & promotion and the ministry of commerce & industry.

The scheme is aimed at improving the global competitiveness of the cluster.

"The central government wants its money back from the PACL," a government insider told Business Standard.

However, one of the directors of the PACL denied it and said, "Private companies have contributed Rs 6 crore, enabling us to inject Rs 30 crore as of now. The central government has made no such demand."

The PACL is aiming at posting a turnover of Rs 10,000 crore in 2009-10.

In addition it also aims at a well-established component supplier base, comprising 40-50 Tier-I suppliers, 200 Tier-II suppliers and 300-400 ancillaries and service providers.

The Centre is supposed to contribute 75 per cent of the cost of infrastructure creation and upgrade in the identified clusters. "So far nearly 16 crore has been sanctioned from the Centre," a government source said.

The rest of the investment is to be funded by local (cluster) stakeholders, with the cluster industry contribution at a minimum level of 15 per cent of the total project cost.

The PACL is also reworking the training model for the proposed set-up with the Indian Institute of Management (IIM), Indore.

The company has roped in IIM Indore for facilities to workers and employees for a skill upgrade programme through setting up a Centre for Innovation and Entrepreneurship at IIM Indore at Rs 1.65 crore. "We are redesigning the model of training," said the director.

IIM Indore is expected to provide campus facilities with a discount of 25 per cent on fee for training and management development programmes and a 33 per cent discount as management consultancy.