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MP plans power equipment hub on DMIC
23 Oct 2009
After making a few futile attempts to attract investors in Rajgarh on an area of 4,000 acres, the state government has planned to develop a power equipment manufacturing hub on the land. The government had signed a Rs 20,000-crore deal a few months ago in Gwalior with Infrastructure Leasing and Financial Services (IL&FS) on making MP a heavy power equipment manufacturing hub.
Earlier the plan was to develop the project in Gwalior, but later the government dropped the plan and now has decided to bring it under the DMIC (Delhi-Mumbai Industrial Corridor) project. According to a source associated with the deal, "The new location has been identified in Rajgarh, as it is in close proximity to the industrial corridor."
In view of the interests and proposals received from a number of companies to set up thermal power units in Madhya Pradesh, the state decided to rope in a consultant so that power equipment manufacturers could be attracted.
BHEL has presence in the state, but no private power equipment manufacturing company has its base here.
"There is a potential in power equipment like turbine and generators, but the state has to develop the land area first and then invite the private players," the source said.
The Rajgarh land is lying vacant for years. However, it is unattended in its natural form. The state government also tried to invite Tata for the Nano car project and Hero Associates for sports aircraft project but failed. If power projects of big corporate houses like Anil Dhirubhai Ambani Group, Essar, Sanghi, BLA Power, etc., for a combined capacity of more than 11,000 Mw come, the power equipment companies will have a vast potential in the state.
A number of companies are in the process of acquiring land, environment clearances or identifying land for their thermal power projects to be set up in Madhya Pradesh.
"By bringing this project under DMIC, the state government wants to push things on fast track, as DMIC is an ambitious project and the state government is actively taking interest in it. The demand for power equipments will spurt after two years and equipment manufacturers will have better infrastructure vis-à-vis that which was proposed in Gwalior," the source added. However, a final decision on development of the land has yet to be taken.
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