Rajasthan goes all out to woo auto investments

With more than Rs 6,000 crore investment tied up with carmaker, Honda Siel and its vendors, the Rajasthan government has embarked upon a massive exercise to attract auto investments from Japan as well as each of the big clusters in Pune, Chennai and Bangalore.

Spearheading this drive is the Rajasthan State Industrial Development & Investment Corporation (RIICO), which is negotiating with a 100 Honda suppliers to invest in and around the company’s plant and R&D centre coming up at Khushkhera near Bhiwadi. Eight Tier 1 suppliers have already committed themselves while talks are on with Tier 2/3 companies.

BOOSTING INVESTMENT

RIICO has also got a study done by the Tata Strategic Management Group to find ways to develop the national capital region of Rajasthan professionally. They have suggested several measures to boost investment and RIICO is working on them. Senior officials of the corporation told Autocar Professional that the area in this NCR comprising Bhiwadi, Khuskhera and Chopanki is fast emerging into a vital auto hub. Around 70 component units are already operating here.

RIICO has also embarked upon developing Bhiwadi Extension as an auto components zone near its existing industrial area. “Honda Siel will bring about Rs 2200 crore while another Rs 3,500 crore will come from its vendors. We have already received proposals of Rs 600 crore from our Chennai and Bangalore campaign. We have reserved 1000 acres for Japanese companies,” said managing director of RIICO, Kuldeep Ranka.

RIICO is the apex body to promote industrial infrastructure. It also finances the units. Thus far, it has developed 304 industrial estates. “Ashok Leyland and MICO already have operations in Alwar and Jaipur. In Bhiwadi, 1200 acres is being developed as an industrial complex of which half will be auto-based. In Chopanki too, we are developing a cluster and tool room,” Ranka said.

SUPPORT SYSTEM

Now what does this mean? RIICO’s general manager, AK Gupta says that the state and centre, along with industry will invest Rs 30 crore as a three-way venture in a tool room. RIICO had signed an MOU with the Japanese External Trade Organisation (Jetro) last year. It has reserved an industrial park for Japanese investment, largely meant for small and medium companies.

To ensure availability of skilled manpower, Rajasthan state has been investing in ITIs (and other training centres) besides the new tool room cum training centre. “The tool room will make available trained manpower and we will discuss the modalities soon,” said senior deputy general manager of RIICO, Anil Sharma.

On the Honda project, Ranka says that the carmaker was convinced that Bhiwadi offered a lot of advantages. It is comfortable in terms of proximity from Delhi and offers good law and order/infrastructure. This is not all. The dedicated road corridor has been a bonus for fast movement of goods to the ports as it links Delhi to Mumbai via Bhiwadi.

P THARYAN