Major slip-ups in MP

After Bina, auto testing track & cluster may elude the state

After having virtually lost the Bina refinery to Amethi in Uttar Pradesh because the Bharat Petroleum Corporation has been asked to set up a unit in Rahul Gandhi's constituency, Madhya Pradesh is set for more losses.

The auto testing track and the auto cluster are preparing to leave Pithampur, in the absence of lobbying and publicity.

The BJP government will face an embarrassing situation in both the cases because Chief Minister Babulal Gaur was upbeat on the Bina refinery and his cabinet colleagues and officials of the industry department on the auto testing track.

Though Industry Minister Kailash Chawla did not clarify if the project had been spiked by the Centre, he hinted the auto cluster might shift to other states, saying, "There is fierce competition and any state which has core competency in the area may take the project away."

Gaur met Union Minister of State for Heavy Industry and Public Enterprises Santosh Mohan Dev in January this year. He requested him to set up an auto testing track in Madhya Pradesh.

Chawla said, "We have earmarked 4,000 hectares of land in Pithampur (in the Dhar district) for testing tracks and had asked for Rs 1,800 crore from the Centre so that it could boost the industrial development of the state and create employment opportunities." Dev had accepted the proposal and had assured help.

The state government was enthusiastic on the project till recently. A state secretariat source said, "The auto cluster has gone the Amethi way," adding "lobbying and strong presentation are the most important factors in any developmental activity."

The Union government is also learnt to have scotched the chances of developing an auto cluster in Pithampur.

"The Union industry ministry has given no further approval because the MP government has shown no seriousness on the Rs 75-crore plan, except proposing names of government officials on the board of the new company to be formed for the auto cluster," a government source said. So far the Centre has sanctioned only Rs 18 crore.

The MP chapter of the CII has projected a turnover of Rs 10,000 crore from the existing and new investment if the auto cluster in Pithampur takes shape.

The proposed project has sought the Centre's contribution of Rs 47.90 crore, which will have a captive power generation plant of 50 MW, a mini tool room, a hazardous waste disposal site, a technical service centre, an industrial training centre and and a centre for small and medium enterprises.

A Special Purpose Vehicle (SPV) has been formed to govern and manage the facilities. The project was expected to complete in 24 months.

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Going southwards

MP is set to encounter more losses after having virtually lost the Bina refinery to Amethi

The auto testing track and the auto cluster are preparing to leave Pithampur in the absence of lobbying and publicity

Centre accuses the Madhya Pradesh government of displaying a non-serious attitude on the Rs 75-crore cluster plan

Says they have done nothing except proposing names of government officials on the board of the new company to be formed for the cluster