Delay in Proposed Furniture Cluster in Indore to Impact Investment Plans

FDT Bureau

The proposed furniture cluster in Indore has been delayed, and this delay has now impacted the investment plans of several investors. The industrialists are reportedly demanding to expedite the process of the cluster in the city.

According to the Association of Furniture Manufacturers and Traders, over 100 industrialists who have proposed to take land in the cluster had made a partial payment to the special purpose vehicle (SPV) that was formed to develop the cluster. Reportedly, Harish Nagar, Secretary, Association of Furniture Manufacturers and Traders Indore informed that it’s been over a year that the industrialists are waiting for the land allotment. It is believed that the members have deposited the money and a partial payment is also been done to the department for the cluster. The delay in the land allotment is increasing the liabilities of the industrialists.

The new cluster policy under MSME Rule 2021 states that SPV will bring investment and the MSME department will act as a facilitator. The development of the cluster will be reportedly done by the SPV which is formed by industry members who are keen on putting up facilities in the cluster.

The proposed cluster is expected to have a common facility centre for testing, training, raw material depot, effluent treatment plant and other basic facilities that will enhance the furniture ecosystem of the area. Also, it is expected to generate employment for over 12,000 people including skilled and semi-skilled workers.

The association stated that the industries had reportedly demanded 150 hectares for the cluster from the state government. Of which, the government provided only 50 hectares for its first phase. Additionally, the earmarking of the land could not be done due to objections from the forest department and farmers.