The Punjab government on Friday signed an agreement with a leading bicycle maker Hero Cycles for allotting 100 acres of land to set up an industrial park in the upcoming Hi-tech cycle valley project at Ludhiana.
A memorandum of understanding (MoU) to this effect was signed by Punjab State Industrial Export Corporation MD Rahul Bhandari on behalf of the state government and Hero Cycles chairman Pankaj Munjal in the presence of Chief Minister Amarinder Singh, and Industry Minister Sunder Sham Arora, as per an official release.
Notably, Hi-tech cycle valley project is coming up at village Dhanansu over 380 acres of land where hi-tech bicycles, e-bikes would be manufactured.
The Chief Minister said that the project shall attract around Rs 400 crore investment by Hero Cycles and its suppliers or ancillaries, and generate close to 1,000 direct employment opportunities.
He said the industrial park will have a production capacity of four million bicycles per annum and the project shall be implemented within 36 months.
Additional Chief Secretary Vini Mahajan said Hero Cycles Ltd has been selected through an objective, competitive and technical bidding process as the ‘project company’ to set up an anchor unit for manufacturing of bi-cycles e-bikes, etc and also to develop the industrial park along with vendor units.
Hero Cycles shall be responsible for the development of the entire industrial park in the allotted land.
Within the proposed project, Hero Cycles will develop its own anchor unit over 50 acres. In the remaining 50 acres, it shall invite major national and international manufacturers as ancillary units, she said.
Chairman Hero Cycles Pankaj Munjal said he hoped that the hi-tech cycle valley at Ludhiana would act as a catalyst for the overall development of the area, giving further impetus to the industrial development of Punjab.
Hero Group was alone producing ten million cycles annually, which accounts for 7.5 per cent of the world production, he added.
The upcoming cycle valley project would cater to 50 per cent demand of cycle production in India and Europe, said Munjal.
Hero Cycles has invited globally reputed manufacturers with high end technology to set up ancillary vendor units in the industrial park, said Munjal.
The company has been allowed to utilise land not only for industrial purpose but also for other allied operations covering warehousing, logistics, research and development centres and skill development centres.
The Hi-tech cycle valley being set up by PSIEC would help in decongestion and relocating industry from Ludhiana, and encourage setting up of an anchor unit in the sector specific fields of cycle industry.
Apart from investment of Rs 300 crore on infrastructure, the project would attract an estimated additional investment of Rs 1,000-1,500 crore.
The cycle valley would provide developed industrial plots to the prospective investors at an affordable price and shall be equipped with modern amenities along with integrated support services covering banking, health, institutional, recreational, education etc.