April 29, 2008	Tuesday	Rabi-us-Sani 22, 1429

KARACHI, April 28: The National Industrial Park and Development Company (NIP) has planned more auto clusters in the country.

The first meeting of the sub-committee on Auto Cluster Development (ACD) will be held on Tuesday in Lahore to finalise locations for setting up of more clusters in addition to those already in the pipeline.

The NIP had sought proposals from the auto assemblers and vendors to identify new locations. The Pakistan Automotive Manufactures Association (Pama) in its proposals said that the locations already identified would be enough for targeted number of 500,000 production units envisaged by Auto Industry Development Plan (AIDP).

However, considering the requirement in foreseeable future, there may be need for more auto specific clusters on Multan Road, Lahore, Hub, Balochistan or material specific clusters like aluminum cluster, plastic cluster etc at suitable locations.

Millat Tractors was of the view that Sheikhupura would be sufficient for the company, while Al Ghazi Tractors proposed Dera Ghazi Khan as this cluster would not only assist the company but would also help develop associated industries in the area.

Dewan Farooqui Motors proposed that that the already planned clusters are well suited to the auto industry, besides the development of auto clusters at Hub, Balochistan and Gujranwala may be considered.

Atlas Group of Companies proposed five vendors specific clusters like steel and chrome plating, aluminum, plastic and rubber and electronics and their proposed locations are Sialkot, Gujranwala, Sheikhupura, Lahore and Karachi.

Metrogroup Private Limited pointed out that a cluster was being proposed for motor cycle assemblers between Kala Shah Kaku and Kamonke.

If the cluster planned for Sheikhupura is shifted to Kala Shah Kaku, it can serve manufacturers on both the GT Road and Sheikhupura Road. Sigma Motors Private Limited proposed setting up of clusters at Port Qasim, Lahore and Site Karachi.

A member of ADC, Mohammad Ashraf Shaikh, said that an auto cluster industrial park is being set up at Korangi by NIP, where the price of per acre of land is Rs7 million. The allocation of plots has started there.

The other cluster is envisaged near the Steel Mill at an area of 200 acres. Another is being envisaged on 200 acres either close to the Motorway or Sheikhupura Road, for which a meeting has been called to finalise the locations.

He said there was a need to ensure availability of land at cheaper rates because if an investor puts handsome money in the capital investment then it will be hard to invest further in other requirements like machinery.

A NIP official dispelled the impression that the land price was very high saying that the land is currently not available at cheaper rate in Pakistan. However, he said that efforts were being made to provide land at reasonable price.

NIP is already working for acquisition of land for auto clusters with enabling infrastructure to provide for setting up of auto units.

This is anticipated that the most crucial issues of the land acquisitions, exorbitantly high prices and other issues being the potential bottlenecks for the new units or for the expansion of the existing ones.