Pithampur to become car hub

MP govt to offer 2500 acres for the development of an automobile testing track

With a view to enhancing the international competitiveness of domestic industry, the Madhya Pradesh government and the Confederation of Indian Industry (CII), Madhya Pradesh Chapter, have signed a memorandum of understanding to develop an automobile industry cluster at Pithampur (Dhar district) industrial area in Madhya Pradesh.

The Pithampur cluster is one of the 19 clusters identified all over India. The state government will offer free land of 2500 acres for the development of an Auto Testing Track at Pithampur, which will probably the biggest automobile testing track in India.

The idea of developing auto cluster is to leverage the potential by supporting cluster mechanism particularly for auto component sector.

The Pithampur industrial area has auto majors like Hind Motors, Eicher, Kinetic and Bajaj Tempo, while it has at least 75-100 auto spare parts manufacturing companies.

The cluster will be guided by industry ownership, public private partnership, impartiality, and industry driven, creating sustainable value, financial independence.

The cluster will create competitive businesses, appropriate, research and training facilities, supportive labour markets, and infrastructure and policy environments.

"A cluster approach will create these conditions and will encourages linked organizations to work and learn together, by sharing common problems and will look for group or individual solutions. Working in cluster will be designed to create more successful businesses in more successful industries," said Sudhir Mehta chairman, CII MP Chapter.

"CII will prepare a detailed project report for the development of auto cluster. The report will comprise concept, size and concept and scope, benefiting industries, facilities and infrastructural details to be developed, statuary interventions required, institutional structure for promotion of the cluster and alike," said Mehta, Chairman CII adding, the government of India has given 'in principal' approval for infrastructural development of auto cluster.

The project report will be submitted to Union government and a fund of Rs 65 crore is likely to be sanctioned for the cluster, said Mehta.

He said, "the auto cluster will develop and grow leading manufacturers and vendors of auto components, build our own reputation as suppliers to the best OEMs of the country, to build on leading standards in quality service and safety, develop and efficient, responsive infrastructure and enhanced customer service adding values."

"Pithampur is Detroit of Asia. With the increase in competition, the profit margins have lowered down hence, the cluster concept based on sharing of resources is gaining the importance," said Raghav Chandra, managing director, Madhya Pradesh State Industrial Development Corporation Ltd (MPSIDC). MPSIDC will provide necessary support directly and through its subsidiary bodies like Audyogik Kendra Vikas Nigam (AKVN).

"The implementation of the project with private partnership will help build confidence in other auto major manufacturers and will also help Pithampur to gain the national status in the manufacturing of auto and auto components in the country," he added.

The state government has also plan to develop a pharmaceuticals cluster at Indore and an engineering cluster at Bhopal.