Hand tools cluster project cancelled

deck: Central Government's grant Rs 18 crore stuck in bank

Gagandeep Singh

Tribune News Service

Jalandhar, December 9

A hand tools cluster that was to be set up at the Gadaipur locality here to equip the related industry in the city with latest technology has been cancelled due to reported differences among cluster members. It was supposed to be started by December 2013.

The grant from the Central Government of Rs 18 crore is said to be stuck in the cluster’s bank account owing to the failure of the project.

The Municipal Corporation (MC) had allotted land measuring 62 kanals and 2 marlas for the project.

The Indian Tools Technology Centre (ITTC) was to facilitate the setting up of advanced common facilities under the Industrial Infrastructure Up-gradation Scheme of the Department of Industrial Policy and Promotion, Union Ministry of Commerce.

Speaking to Jalandhar Tribune, chairman of the cluster, Gautam Kapoor said the project could not go ahead due to certain reasons, including differences among hand tool industrialists.

He alleged that some of the cluster members had opposed the project, as they had some vested interests.

He said following so much efforts by the cluster members, the land had been got allotted for the purpose.

He said the total cost of the project was estimated around Rs 100 crore which included grants from the Central Government, contribution by the cluster members and state governments. The state government had provided a chunk of land as its share.

He said if the project had been implemented, it would have given a huge boost to the hand tool industry in the city.

Gautam said the Union Ministry of Commerce had already given the grant of Rs 18 crore. Moreover, 10 prominent industrialists had contributed Rs 1.5 crore for the purpose. All money is stuck in the bank account of the cluster.

Apart from this, another cluster member Sharad Aggarwal said it was a great opportunity that had been lost by Jalandhar industrialists.

He said since the project was based on public private partnership (PPP) model, it was very difficult to protect the interests of all stake holders, which was one of the reasons behind the failure of the project.

The cluster was initially started by three industrialists, whose membership rose to 50.