The Hindu Business Line : Rs 20-cr instalment boosts Pimpri auto cluster project

Of this, Rs 15 crore has come in from the Union Government and the remaining has been contributed by the Pimpri Chinchwad Municipal Corporation (PCMC).

The total outlay for the first phase is Rs 67 crore. Talking to reporters, Mr Dilip Band, Municipal Commissioner, PCMC, said out of this Rs 20 crore, Rs 10 crore has been allotted for the development of the auto cluster. A total of 23 acres has been set aside for the development of the project on the Mumbai-Pune highway. Of this, 10 acres will be for the auto cluster project.

He said that along with the auto cluster project, plans are also afoot for the development of a science and technology park and an industrial park in the same vicinity. He said the aim of developing the science park would be on the same lines of the Singapore Science and Technology park and it would have a planetarium and an Imax theatre. The total investment earmarked for this is Rs 3.5 crore and the park will have a seating capacity of 300.

Mr D.K. Abhyankar, Director-General, Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), said that the chamber would be contributing in the form of land and building to the extent of Rs 1.25 crore. PCMC, which is a major stakeholder in the project, is pooling in Rs 22 crore towards equity and Rs 5 crore towards interest-free loans. He noted that Rs 5 crore from the equity has been given as the first instalment for the project. The other partners include Association for the Promotion of Plastics and the All India Rubber Industries Association.

He said the contribution from the industry during the first phase would be Rs 3 crore. Mr Abhyankar noted that about 350 small and medium enterprises are in the vicinity of the project and are expected to derive the maximum benefit. He said that the auto cluster would also host an exhibition centre entailing an investment of Rs 8 crore, which is expected to come in from original equipment manufacturers.

Mr Band said the spread of Rs 20 crore would be Rs 14 crore for the purchase of equipment and software, Rs 3 crore for polymer and rubber and the remaining Rs 3 crore for the building development. The first phase will focus on sectors such as auto engineering, auto electronics and computer-aided designing/computer-aided manufacturing.

Automotive and product designing along with training facilities will be provided for the advanced customers. The procurement of the equipment will begin in August 2005 and the civil work will begin thereafter.

In the second phase, rubber and polymer infrastructure facilities such as solid waste, fibre optics and wireless communication and marketing development facilities will form the focus area. Mr Abhyankar said that to ensure that the project is under professional management, the Auto Cluster Development and Research Institute Ltd, has been incorporated and would be holding its first board meeting on January 10, 2005.

The composition of the board will be five members from the PCMC, three from MCCIA, four nominees from the Government (three from the Maharashtra Government, one from the Union Government), one institutional nominee and three general members.

The nominees from the Government sector include Dr R.N. Pandey, Director, Industrial Promotion Policy, Mr Vishwas Dhumal, Principal Secretary, Government of Maharashtra, Mr Deshmukh, Joint Director of Industries, and Mr Sanjay Chavane, Development Officer with the Union Government. The MCCIA nominees are Mr Arun Firodia, Chairman, Kinetic Engineering Ltd, Mr Atul Kirloskar, Chairman and Managing Director, Kirloskar Oil Engines Ltd, and Mr Abhyankar. The Managing Director to lead the team will also be selected during the first board meeting.

Mr Abhyankar said the auto cluster is expected to be self-sustaining after its first year of operation. The projectwill be kick-started in August 2005. The revenue estimated during its first year of operations is Rs 3 crore, which would increase to Rs 12 crore. The revenue is expected to come in from the research and development centre, testing and training facilities, which would be set up in the cluster, he added.

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