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Units to fund auto cluster project

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By ANKUSH SINGH in Jamshedpur
  • Published 25.06.09
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Jamshedpur, June 24: Small and medium enterprises based at Adityapur Industrial Area (AIA) will contribute more than Rs 3 crore to develop the Adityapur Auto Cluster Limited (AACL).

Senior AACL officials said that the entrepreneurs would provide Rs 20,000 for each acre that is being used by them to develop the proposed project. The units would be paying the amount in three instalments.

AACL director and president of Adityapur Small Industries’ Association (ASIA) S.N. Thakur said that the decision was taken after meetings with the Adityapur Industrial Area Development Authority (Aiada).

“The AACL board decided to raise Rs 3.1 crore through equity contribution from small, medium and large-scale AIA units. We wish to raise Rs 1 crore with the help of the first instalments. Presently, the AACL has received Rs 8.65 lakh collected by the units,” said Thakur. He added that AACL has decided to add an extra of Rs 9.84 lakh to the project through equity participation. Apart from the AIA units, the AACL has also offered equity participation to other large-scale houses.

Earlier, the AACL had decided to offer equity of Rs 1,000 each to the houses interested in the cluster project. Units that accept equity project participation would be free to use facilities being developed as a part of the project.

The cluster would have a hi-tech laboratory, effluent treatment plant, hazardous waste management facility and a common marketing facility. The Centre has already sanctioned a Rs 47.79 crore subsidy to the proposed project. Ten per cent of the project cost would be provided for by the state, while industrialists will have to manage the rest of the project pegged at Rs 65 crore.

The laboratory would be developed with an investment of Rs 41 crore, while Rs 21 crore would be invested for the treatment plant and waste management facility. Another Rs 3 crore would be spent towards developing a common marketing facility for the cluster units. The Union and state governments have already released the first instalment.

Meanwhile, Jharkhand Industrial Infrastructure Development Corporation has been selected as the project management consultant.