Industrial units in the Pithampur Auto Cluster
have a total yearly tooling requirement of nearly Rs.
30 crores. OEMs have tool-rooms within their plants
to meet some of their basic tooling requirements;
however, a large proportion of tooling is outsourced
to commercial external facilities. SMEs regularly
outsource their tooling requirements to vendors /
tool-rooms in Indore and other cities such as Pune.
The Indo-German Tool Room (IGTR) at Indore is a
full-fledged Tool room and training center located
in the Industrial area, Sanwer Road. Feedback from
industries in the Pithampur auto cluster indicates
that the IGTR is too expensive for a large part of
their tooling requirements with charges at several
times those at other facilities. Further, the IGTR
is extremely slow to respond to industry
requirements, and orders often take several months
to process.
It is recommended to set up a modern Tool Room
as part of the Pithampur auto cluster initiative to
meet normal tooling requirements of industry. The
Cluster would provide land & building space for the
facility, and undertake facility operations and
maintenance.
The Government of India has notified a Centrally
Sponsored Scheme to assist State Governments to set
up tool rooms within industrial clusters. It is
estimated that a modern Tool Room such as described
above can be set up at a cost of around Rs. 31.9
crores (including Rs. 25.4 crores towards cost of
machinery / equipment).
The Government of India provides central
assistance in the form of one time grant-in-aid
equal to 90% of the cost of machinery / equipment
(with an upper limit of Rs. 9.00 cr) to establish a
new Mini Tool Room. It is proposed to separately
apply for grant funding under this scheme of the
Ministry of Small Scale Industry, Government of
India to augment funds available for the project.
Cluster stakeholders will contribute total
equity of Rs. 700 lacs for this project. The balance
amount of 15.9 crores is sought as grant under the
IIUS scheme.
