Even as governments continue to showcase Vidarbha as an emerging industrial destination through investment summits, defence corridors and logistics infrastructure, one of the region’s most significant MSME projects appears to be slipping away. The proposed Auto and Engineering Cluster at Hingna MIDC, sanctioned under the Ministry of Micro, Small and Medium Enterprises’ (MSME) Cluster Development Programme, is now under cancellation, according to a written reply tabled in the Rajya Sabha on August 10. The reply by Shobha Karandlaje, Minister of State for MSME, lists the Auto and Engineering Cluster, Nagpur among the ongoing Common Facility Centre (CFC) projects in Maharashtra, but marks its status as ‘Under Cancellation’.

 

The project had been sanctioned with a Government of India grant of Rs 12.34 crore. The development raises serious questions over the future of a project conceived to transform the technological capabilities of hundreds of engineering and automotive MSMEs in the Hingna industrial belt. The cluster was proposed as a common technology hub providing advanced tool room facilities, design centres, testing infrastructure, product development support and skill development facilities for local industries. It was expected to reduce the region’s dependence on Pune, Mumbai and Bengaluru for specialised engineering services. Official records submitted to the MSME Ministry show that the cluster serves an industrial ecosystem comprising 716 units, including 573 micro enterprises and 143 small enterprises, generating direct employment for nearly 9,800 people and indirect employment for more than 23,600. The cluster’s turnover had grown from Rs 977 crore in 2012-13 to Rs 1,307 crore in 2016-17. The project was originally granted final approval under the Micro and Small Enterprises-Cluster Development Programme (MSE-CDP) with a total project cost of Rs 17.63 crore, including Rs 12.34 crore from the Centre, Rs 3.53 crore from the State Government and Rs 1.76 crore as stakeholder contribution.

 

Under MSE-CDP guidelines, participating industries are required to contribute a minimum share towards creation of common facilities. Government sources indicated that difficulties in mobilising stakeholder contribution and implementation-related issues have stalled progress, ultimately pushing the project towards cancellation. The scheme mandates participation by cluster stakeholders through a Special Purpose Vehicle. The setback comes at a time when Vidarbha is positioning itself as a hub for defence manufacturing, EV components, aerospace and precision engineering. With MIHAN, Samruddhi Mahamarg and multimodal logistics infrastructure touted as Vidarbha’s growth engines, the possible loss of a long-awaited engineering cluster is likely to revive concerns that the region continues to lose industrial opportunities despite repeated promises of balanced development.