Rs 75 cr Indore auto cluster taking shape

A team of senior officials recently visited Pune to study the Pune Auto Cluster regarding machinery and equipment for tool room etc. required for the project.

With private auto component manufacturing units investing Rs 4 crore in the Pithampur Auto Cluster Ltd (PACL)""a special purpose vehicle""the Rs 75-crore auto cluster project is now taking shape.

Confederation of Indian Industry, Madhya Pradesh Chapter, the state government and the central government had formed PACL to run the Rs 75-crore auto cluster.

The central government has already disbursed Rs 16 crore to the company. However, local auto component industry members have only given a lukewarm response since it required 15 per cent contribution from them. The state government had expressed its intention to go solo with the project.

The central government had last year approved the auto cluster in Pithampur, which will include a hazardous waste site, a tool room, a design room and a training facility. Ramky Infrastructure Ltd will be responsible for constructing the hazardous waste site.

"Private partners of the company have invested Rs 4 crore. We have already receive an amount of Rs 16 crore from the central government, which is 85 per cent of the project cost. The hazardous waste site, which is being developed near Pithampur is near completion," an official in department of industries said.

The PACL has roped in Indian Institute of Management-Indore to provide facilities to workers and employees for skill upgrade programme through setting up a Center for Innovation and Entrepreneurship at a cost of Rs 1.65 crore.

IIM-Indore will provide necessary campus facilities with a discount of 25 per cent on fee for training and management development programmes and 33 per cent discount on management consultancy. The facility will have full furnished air-conditioned networked rooms, training rooms, recreation rooms etc.

"A team of our officers visited Pune to study the model of Pune Auto cluster. They are soon going to order machinery and equipment for the cluster's tool room," said an official adding, "We want to complete the project well before Pune project."

The project has been given approval under the Industrial Infrastructure Upgradation Scheme' (IIUS) of Government of India. The central government will provide an amount of Rs 50 crore as a grant.