Associated Chambers of Commerce and Industry of India (Assocham) has said that Madhya Pradesh possesses huge potential to emerge as a major hub in the automobile sector if the state government made concerted efforts.
In its report released here on Tuesday, the Assocham recommended steps like tax breaks, concessions, subsidies and other related incentives to attract automobile sector as it would provide fillip for setting up various ancillary units thereby generating huge employment opportunities.
The apex industry body has mooted a proposal to the Madhya Pradesh Government to develop a special economic zone (SEZ) in the extended Indore or identify another area for automobile hub, which could generate over one lakh direct and indirect jobs during the course of next five years and give over Rs 20,000 crore by way of taxes to the exchequers every year.
Releasing the report, Assocham Co-chairman (Madhya Pradesh Development Council) Anil Agrawal said automobile industry was shifting from West Bengal and Haryana owing to land and labour problems.
“Gujarat succeeded in attracting Tata for its Nano project because it allotted land faster. Similarly, Madhya Pradesh can lure automobile industries by clearing hurdles,” he said.
The Assocham suggested to develop automobile hub in the state through a cluster approach based on industrial ownership or a public-private partnership to create a conducive and competitive business environment thereby providing appropriate research and training facilities, supportive labour market and requisite infrastructure.
The apex chamber has also suggested the state government to focus on developing a supplier base of manufacturers of parts like axle, brake, clutch, engine, gear, shaft, valves and other electrical auto components.
Assocham Secretary General DS Rawat stressed on the need for sorting out land allotment-related issues, strengthening power sector, improving infrastructure and better implementation of policies for developing automobile hub in the state.