Pithampur industrial town opens doors to all investors

Having failed to get a firm commitment from the Japanese, Korean and Chinese investors for the proposed ‘country-specific industrial township’ in Pithampur, the industry department has decided to throw the 1,200-acre zone open for domestic investors as well.

Having failed to get a firm commitment from the Japanese, Korean and Chinese investors for the proposed ‘country-specific industrial township’ in Pithampur, the industry department has decided to throw the 1,200-acre zone open for domestic investors as well.

Industry officials said the plans for an exclusive zone for foreign investors had been scaled down as there was a huge demand for land in Pithampur from reputed domestic firms and the availability was limited.

The booking for the plots will open during the Global Investors’ Summit (GIS) scheduled to be held in Indore on October 22-23.

The state government aims to emulate Rajasthan’s model of exclusive industrial zones for Japanese and South Korean companies in Neemrana in Alwar district. In Neemrana, authentic Japanese restaurants such as Daikichi cater to hundreds of Japanese expatriates.

A golf course and residential complexes have also been built exclusively for Japanese employees.

Last year, the state government had floated the idea of making exclusive zones for Japanese, South Koreans and Chinese investors in Pithampur.

The government had also organised an investment seminar in Indore earlier this year for the Japanese companies with the help of Japan External Trade Organisation (JETRO).

However, the response has been lukewarm despite a slew of concessions announced by the government as the proposed site remains undeveloped.

It is only now that the state government has set the ball rolling for infrastructure development on the 1,200 acre land at an estimated cost of about Rs 360 crore.

Audyogik Kendra Vikas Nigam managing director Kumar Purushottam confirmed that both the foreign as well as domestic investors would be eligible to apply for plots in the industrial zone.

He, however, said plans to build an exclusive zone for foreign investors had not been shelved but the government was awaiting their response and some progress is expected during the GIS.

Lukewarm response

In October last year, the MP government signed a pact with the Japan External Trade Organisation to facilitate Japanese investments in the proposed exclusive industrial township in Pithampur near Indore.

The government announced a slew of concessions including entry tax exemption for seven years, 100% exemption on stamp duty, and 100% reimbursement of VAT and CST for 10 years for the industrial zone

But the concessions failed to attract expected response

The government expects to sign agreements with some Japanese firms during the upcoming investors’ meet.